Mako Closes Silver Stream with Sailfish and Significantly Increases Working Capital by Repaying Principal and Extending Maturity of Remaining Debt
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595 Burrard Street, Suite 2833
Vancouver, BC V7X 1K8
Tel: (604) 646-1580
www.makominingcorp.com
TSX-V: MKO | OTCQX: MAKOF
Suite 700 - 838 West Hastings St.
Vancouver, BC - V6C 0A6
IR: (647) 203-8793
www.makominingcorp.com
TSX-V: MKO | OTCQX: MAKOF
May 25th, 2023
TSX-V: MKO; OTCQX: MAKOF
Mako Closes Silver Stream with Sailfish and Significantly Increases Working Capital by Repaying
Principal and Extending Maturity of Remaining Debt
Mako Mining Corp. (TSX-V: MKO; OTCQX: MAKOF) (“Mako” or the “Company”) is pleased to announce
that the Company has closed its previously announced 24 -month silver stream (the “Silver Stream”) with
Sailfish Royalty Corp. (“Sailfish”) for US$6 .0 million in cash pursuant to a silver stream agreement dated
May 24th, 2023 (the “Silver Stream Agreement”). For more details on the Silver Stream, please refer to the
Company’s news release dated March 2nd, 2023 and material change report dated March 8 th, 2023.The
proceeds from the Silver Stream will be used to repay the majority of the principal remaining on the Wexford
Loan (as defined below) and for general working capital needs.
Furthermore, the maturity date for the repayment of all remaining principal and accrued interest owing by
Mako under the Wexford Loan has been extended for an additional year to March 31 st, 2025, with no
additional costs to shareholders , thereby providing the Company with a more flexible balance sheet and
strengthening the Company’s current working capital position.
As Mako and Sailfish have a common control person being Wexford Capital LP, and a common director,
being Akiba Leisman, the Silver Stream transaction is a "related party transaction" under Multilateral
Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”), and the
extension of the maturity date under the Wexford Loan is also a related party transaction given Wexford
LP is a control person of Mako. The process and completion of the transactions was reviewed and
approved by the independent directors of Mako, with Mr. Leisman having declared his interests as a
common director of Mako and Sailfish, and Mr. Paul Jacobi having declared his interests as a partner of
Wexford Capital LP. The Company is relying on the exempt ions from the formal valuation and minority
shareholder approval requirements of contained in sections 5.5(a) and 5.7(1)(a) of MI 61 -101 as neither
the fair market value of the subject matter of, nor the fair market value of the consideration for, each of the
transactions, insofar as they involve the related parties, is expected to exceed 25% of the Company's
market capitalization, as determined under MI 61-101. Mako and Sailfish are also non-arm’s length parties
(as defined in TSX Venture Exchange Policy 1.1) given that they share a common director and control
person.
Extension of Wexford Loan
Wexford Catalyst Trading Limited, Wexford Spectrum Trading Limited and Debello Trading Limited
(collectively, the “Lenders”) and Wexford Capital LP, as agent on behalf of the Lenders (the “Agent”) have
agreed to an extension of the current maturity date of the unsecured term loan in the amount of US$15.2
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million (the "Wexford Loan"), of which US$ 6.9 million of principal remains outstanding (the “Wexford
Loan”) from March 31st, 2024 to March 31st, 2025. This extension was made pursuant to the terms of the
loan agreement dated as of February 20, 2020, as previously amended, as among Mako, as borrower, the
Lenders and the Agent. The Wexford Lo an is fully drawn and may be prepaid at any time, in whole or in
part, at par plus accrued but unpaid interest, without penalty or premium and currently bears interest at a
rate of 10% per annum, payable semi -annually on June 30 th and December 31 st each year. No fees, or
other compensation, was provided to the Lenders for this twelve-month extension.
Akiba Leisman, CEO of Mako states, “the proceeds from the sale of silver under the Silver Stream, which
the Company currently produces as a byproduct, will be used to repay the majority of the outstanding
principal owing under the Wexford Loan. Additionally, all remaining principal and accrued interest unde r
the Wexford Loan will be extended by a year at no additional cost to shareholders. This will provide Mako
with a much more flexible balance sheet as it seeks organic and external growth opportunities in the near
future. To that end, the Company expects to announce initial discovery drilling results from its maiden
drilling program at La Segoviana next week.”
On behalf of the Board,
John Hick
Chairman
About Mako
Mako Mining Corp. is a publicly listed gold mining, development and exploration company. The Company
operates the high -grade San Albino gold mine in Nueva Segovia, Nicaragua, which ranks as one of the
highest-grade open pit gold mines globally. Mako’s pr imary objective is to operate San Albino profitably
and fund exploration of prospective targets on its district-scale land package.
For further information: Mako Mining Corp., Akiba Leisman, Chief Executive Officer, Telephone: 203-862-
7059, E -mail: [email protected] or visit our website at www.makominingcorp.com and
SEDAR www.sedar.com.
Forward-Looking Information: Some of the statements contained herein may be considered “forward -
looking information” within the meaning of applicable securities laws. Forward-looking information can be
identified by words such as, without limitation, “estimate", "project", "believe", "anticipate", "intend",
"expect", "plan", "predict", "may" or "should" or variations thereon or comparable terminology. The forward-
looking information contained herein reflects the Company’s current beliefs and expectations, based on
management’s reasonable assumptions, and includes, without limitation, Mako’s intention to use the full
proceeds received on closing of the Silver Stream to re pay the outstanding principal under its loan from
Wexford Capital; Mako’s intention to release initial discovery drilling results from its maiden drilling program
at La Segoviana next week; andthat Mako will be able to operate San Albino profitably and fund exploration
of prospective targets on its district -scale land package. Such forward -looking information is subject to a
variety of risks and uncertainties which could cause actual events or results to differ materially from those
reflected in the forward-looking information, including, without limitation, that Mako re-allocates the use of
any of the proceeds from the Silver Stream closing based on prudent business reasons, and other risks
and uncertainties as disclosed in the Company’s public disclosure f ilings on SEDAR at www.sedar.com.
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Such information contained herein represents management’s best judgment as of the date hereof, based
on information currently available. Mako does not undertake to update any forward -looking information,
except in accordance with applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.