Mako Mining Provides Corporate Update
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595 Burrard Street, Suite 2833
Vancouver, BC V7X 1K8
Tel: (604) 646-1580
www.makominingcorp.com
TSX-V: MKO | OTCQB: MAKOF
August 9, 2019
PRESS RELEASE - #19-11
TSX-V: MKO
MAKO MINING PROVIDES CORPORATE UPDATE
Vancouver, B.C. – August 9, 2019 – Mako Mining Corp. (TSXV: MKO) (“Mako”) is pleased to provide an update
on its recently completed rights offering; progress at its fully -permitted San Albino project in Nueva Segovia,
Nicaragua (“San Albino”) where we are developing a high -grade open pit gold mine next year; the closing down of
its La Trinidad mine in Sinaloa, Mexic o; and management and board changes, including the appointment of Akiba
Leisman, formerly Interim CEO, as CEO of Mako.
Completion of the Rights Offering
On July 23 rd, Mako completed a fully subscribed $27 million rights offering to fund the majority of construction
capital for San Albino. Affiliates of Wexford Capital LP (“Wexford”) purchased 72% of the financing, with strong
support from existing shareholders. Wexford currently owns approximately 55.3% of the issued and outstanding
shares of Mako, and we believe our shareholder base is fully supportive of our strategy to advance the San Albino
project into production.
Appointment of New Director
The board has appointed Paul M. Jacobi, a Managing Director at Wexford, to the board of directors of Mako. At
Wexford, Paul was part of the Private Equity team which created Diamondback Energy Inc. (“Diamondback”).
Diamondback is a US$15 billion energy exploration and production company focused on the Permian Basin, and is
now a member of the S&P 500.
Nicaragua Update
We are rapidly advancing the construction of our San Albino project. Ground clearing activities are nearly complete,
and civil works are well underway. Long lead pieces of equipment are being procured on the secondary market,
and the project is on track to begin commercial production by late summer of 2020.
A 7,000-meter infill program at San Albino has been commissioned, with over 1,000 meters completed to date. Two
core rigs are operating at San Albino with a third rig ready for commissioning later this month. Assays from the infill
program will be consistently reported over the course of the coming weeks.
An additional core rig is focused on exploration drilling at the Las Conchitas property 3 kilometers to the south of
San Albino. We have reported encouraging results, and will continue to report assays as received.
Mexico Update
Gold production from the La Trinidad mine in Sinaloa, Mexico is nearing completion. Mining operations ceased at
the end of March (see Press Release dated April 1, 2019). Most of our crushing plant has been moved from the site
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and will either be sold or used at San Albino. Any equipment used for Nicaragua will incrementally lower the capital
cost of the San Albino project.
To date, we have been unsuccessful in receiving any insurance proceeds from our claim due to the damages
sustained at La Trinidad from Hurricane Willa in October 2018. Legal actions have commenced against the insurance
provider and their reinsurers.
Discussions are underway with the mining contractor for La Trinidad and the Mexican government regarding
significant payables still outstanding at our Mexican subsidiary that holds La Trinidad . We believe that we have
appropriately structured our Mexican subsidiary such that these liabilities do not extend outside of Mexico,
whereby any proceeds from the sale of the equipment, or success in the insurance litigation, will be for the benefit
of Mako. Notwithstanding this, constructive discussions are proceeding with the mining contractor with the goal
of reaching a mutually acceptable settlement, which will be reported on as appropriate.
All other assets held in Mexico will be sold or liquidated in due course.
Management Changes
The Board has appointed Akiba Leisman, a director , and formerly Interim CEO, as CEO of Mako. Jesse Muñoz will
continue to lead the operations as COO, and Frank Powell and Zoran Pudar will continue spearheading our mine
and regional exploration programs respectively. Additionally, Cesar Gonzalez, currently a director of Mako, has
been appointed to the newly created role of Vice President of Corporate Development.
“We are focusing Mako on generating returns for our shareholders” said Mako’s CEO, Akiba Leisman, “and we
believe that to achieve this, we have to execute on two main objectives:
1. To complete the construction of the San Albino gold mine on time and on budget; and
2. To successfully execute an aggressive regional exploratio n program, which if successful , could
significantly expand the San Albino mining operation.
To align management with shareholders, 42.5 million five year options, representing just over 7% of the issued and
outstanding shares of Mako, have been granted to management and directors, vesting over a 3 -year period. The
average strike price of these options is $0.25625 per share, which is more than 100% higher than where Mako’s
shares are presently trading. The options will have four strike prices ranging from $0.1625 to $0.35 per share.
I want to congratulate those shareholders who participated in the rights offering, and we look forward to generating
returns for all shareholders.”
On behalf of the Board,
“Akiba Leisman”
CEO
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About Mako
Mako Mining Corp. is a publicly listed gold mining, development and exploration firm. The Company is developing
its high -grade San Albino gold project in Nueva Segovia, Nicaragua. Mako’s primary objective is to bring San
Albino into production quickly and efficiently, while continuing exploration of prospective targets in Nicaragua.
For further information about Mako: 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 is based on certain expectations and
assumptions, including that the Company’s exploration programs will be successfully completed; that although the Company’s
production decision at its San Albino project is not based on a technical study supporting mineral reserves, and therefore no t
based on demonstrated economic viability, management curr ently believes the project is on track to achieve its fir st gold pour
by the late summer of 2020; that the Company will be successful in its proposed financing plans necessary for the construction
at the San Albino project. 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,
the risks that additional satisfactory exploration results at the Mango zone will not be obtained; that the PEA is preliminary in
nature and there is no certainty that the PEA will be realized; the risk of economic and/or technical failure at the San Albino
project associated with basing a production decisi on on the PEA without demonstrated economic and technical viability ; that
exploration results will not translate into the discovery of an economically viable deposi t; risks and uncertainties relating to
political risks involving the Company’s exploration and development of mineral properties interests; the inherent uncertainty of
cost estimates and the potential for unexpected costs and expense; commodity price fluctuations, the inability or failure to obtain
adequate financing on a timely basis and other r isks and uncertainties. Such information contained herein represents
management’s best judgment as of the date hereof, based on information currently available and is included for the purposes of
providing investors with the Company’s plans and expectation s at its San Albino project and the Las Conchitas area, and may
not be appropriate for other purposes. 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.