Mako Mining Announces a Non-Binding Letter of Intent to Enter a Gold Purchase Agreement with Sailfish Royalty to Lower its Cost of Capital and Facilitate Shareholder Returns and Accretive Acquisitions

Mako Mining Corp. (MKO) has entered into a non-binding letter of intent to sell Sailfish Royalty a corporate-level gold stream over a 240-month period. Under the proposed terms, Mako would deliver 650 ounces of gold per month until August 1, 2028, increasing to 750 ounces per month until February 1, 2031, and 900 ounces per month until February 1, 2037. For the remainder of the term, the delivery schedule would rise to 1,000 ounces per month. Mako retains the right to deliver refined gold from any source other than Mt. Hamilton, including LBMA bars.

The sale price to Sailfish is set at 25% of the LBMA PM Fix at the time of delivery. In consideration, Mako would receive 70,000,000 Sailfish shares valued at US$5.76 each, representing an initial value of approximately US$403 million. This transaction would result in Mako holding approximately 49% of Sailfish. The Sailfish shares are subject to a 12-month lock-up, with 50% of the shares released every six months following closing.

While Mako holds at least 20% of Sailfish, it has agreed to a standstill and to vote in line with Sailfish board and management recommendations. The obligations under the agreement would be secured against all present and after-acquired property except Mt. Hamilton. This security includes a pledge of Sailfish shares, a pledge of Stronghold Guayana shares, and a security interest in the Moss Mine.

Because Wexford controls both Mako and Sailfish, the transaction is classified as related-party. It requires a formal valuation, a fairness opinion, disinterested shareholder approval, and TSXV approval to proceed.

Mako Mining Corp. (MKO) issued a corporate transaction update regarding a proposed stream deal, distinct from an earnings release. Under the schedule as drafted, the company would deliver approximately 217,000 ounces of gold over 20 years, assuming near-term closing. Based on a Q2 2026 realized price of about US$4,201 per ounce, that gold carries a spot value of roughly US$912 million. The deal structure includes 25% cash payments totaling about US$228 million, while the Sailfish share consideration is initially valued at about US$403 million.

On a face-value basis, Mako would receive approximately US$631 million for US$912 million of gold, representing a shortfall of roughly US$281 million, or about 31% of spot value. While the transaction is framed as a means to lower the cost of capital and potentially return the US$112 million cash and securities balance, the actual vehicle constitutes a long-term, secured claim on future gold production at a deep discount to spot.

The capital-return theme was previously telegraphed in Q2 2026, and the stock had rallied strongly prior to this letter of intent. The specific terms of the deal present a negative skew, differing from a clean distribution of cash. Additionally, the security package would encumber substantially all of Mako’s assets except Mt. Hamilton, including the Moss Mine, thereby reducing future financial flexibility.

Mako Mining Corp. (MKO) operates two gold mines: the San Albino open-pit in Nicaragua and the Moss Mine in Arizona. San Albino is permitted for 1,000 tpd and holds district-scale exploration potential. The Moss Mine is a low-grade heap-leach operation with a reserve estimate supporting a 15-year mine life.

The company’s development assets include Mt. Hamilton in Nevada and Eagle Mountain in Guyana. Mt. Hamilton is a permitted heap-leach project targeting first gold production in Q4 2027. Eagle Mountain is at the PEA stage with indicated resources of approximately 1.18 moz gold, with a mining license expected in 2027.