Mako Mining Enters Into a Definitive Purchase and Sale Agreement to Acquire the Mt. Hamilton Gold-Silver Project in Nevada from Sailfish Royalty
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On November 26, 2025, Mako Mining announced it has entered into a definitive purchase and sale agreement to acquire the Mt. Hamilton Gold-Silver Project in Nevada from Sailfish Royalty Corp. This agreement formalizes the transaction initially proposed on September 30, 2025.
As consideration, Mako will provide Sailfish with a 60-month gold stream, delivering 341.7 troy ounces of gold per month at a purchase price of 20% of the LBMA PM Fix price. This stream is subject to a collar, ensuring the effective gold price is between US$2,700/oz and US$3,700/oz. Following the 60-month stream period, Sailfish will receive a 2% net smelter return (NSR) royalty for the life of the mine.
The transaction is classified as a related-party transaction, as both Mako and Sailfish are controlled by Wexford Capital LP. The deal is subject to customary closing conditions, including TSX Venture Exchange acceptance and shareholder approval from both Mako and Sailfish, with a special meeting for Mako shareholders anticipated in February 2026.
The signing of a definitive agreement is a material and positive step forward, as it solidifies the acquisition of a key development asset and provides a clear path to closing. This follows the initial announcement on September 30, 2025, and demonstrates progress on the company's stated growth strategy.
Strategically, the acquisition is significant. It diversifies Mako's asset base into Nevada, a premier mining jurisdiction, reducing its reliance on the San Albino mine in Nicaragua. The project is fully permitted for construction, which de-risks the development timeline considerably. The inclusion of a potential tungsten deposit provides long-term optionality in a critical metal, although this remains a very early-stage target based on historical, non-compliant estimates.
Financially, the structure is a notable positive for current shareholders as it avoids equity dilution. Instead of a large cash outlay, Mako is using a gold stream, effectively a forward sale of future production. While this avoids dilution, it is crucial to recognize the stream as a significant long-term liability that encumbers the project's future cash flows by selling gold at a steep discount.
The company's financial position has strengthened considerably throughout 2025. Cash flow from San Albino has been robust, and the company raised over C$55 million in October. In its Q3 results, Mako reported a cash balance of US$66 million and stated it is debt-free. The CEO expressed confidence that this cash position, combined with operating cash flow from San Albino and the Moss Mine, is sufficient to fund the construction of Mt. Hamilton in 2026. This is an aggressive but seemingly funded growth pipeline.
However, the primary risk associated with this transaction is its related-party nature. Wexford Capital controls all entities involved: Mako (the buyer), Sailfish (the seller), and provided the bridge loan for Sailfish to acquire the asset in the first place. While an independent special committee was formed, the convoluted structure raises questions about whether Mako is receiving the best possible terms. The upcoming shareholder vote will be a critical test of minority shareholder confidence in the deal.
The market's reaction has been logical. The stock saw a significant positive re-rating after the initial September 30 announcement but has since pulled back, particularly after the C$8.00 financing. This definitive agreement was an expected development and does not introduce new information, thus confirming the path forward rather than acting as a new catalyst.
Mako Mining is a gold producer with a portfolio of operating, development, and exploration assets in the Americas. - Flagship Project: The San Albino Gold Mine in northern Nicaragua is the company's cornerstone asset. It is a high-grade, open-pit mine that has been in commercial production since July 2021 and generates the majority of the company's cash flow. The company is also developing an underground component. - Other Assets: The company owns the recently acquired Moss Mine, a producing open-pit heap leach operation in Arizona, USA. It is also advancing the large-scale Eagle Mountain development project in Guyana and is now acquiring the permitted Mt. Hamilton development project in Nevada, USA.