Mako to Acquire Moss Gold Mine in Arizona

SEATTLE (Scrap Monster): Mako Mining (TSXV: MKO; OTCQX: MAKOF) this week said it intends to acquire 100% of the Moss gold mine in Arizona from EG Acquisition, an entity established by Mako’s main shareholder Wexford Capital.  

The asset is being acquired after former owner Elevation Gold Mining filed for creditor protection in August 2024, citing debt and expenses.  

The price is in the range of $4.9 million up to $6.4 million cash, contingent on resolving disputes surrounding a net smelter return royalty, the company said.  

If the royalties are vested away, Mako, through its then wholly-owned subsidiary EGA has agreed to pay up to an additional $1.5 million to the creditors. Mako said it expects the status of these royalties to be determined in the first half of 2025. 

The proposed transaction will allow Mako to add a producing asset located in a top tier jurisdiction funded solely out of cash flow generated from the last quarter of Mako’s current mining operations, it said.  

 The Moss mine has been producing gold throughout the bankruptcy process through its beneficiation facilities. Mako said it plans to restart mining once it has had an opportunity to optimize the mine plan and debottleneck the crushing plant.  

In March 2024, Mako announced its expansion into South America with the acquisition of Goldsource Mines (TSXV: GXS) and its flagship asset, the Eagle Mountain gold project in Guyana. 

Mako also operates the high-grade San Albino gold mine in northern Nicaragua.

 Courtesy: www.mining.com