Mako Mining Proposes 20-Year Gold Stream Agreement With Sailfish Royalty

Mako Mining has signed a non-binding letter of intent to enter a 20-year gold streaming agreement with related party Sailfish Royalty. The company intends to use this deal to lower its cost of capital and provide flexibility for shareholder returns or future acquisitions.

Under the proposed terms announced September 11, 2026, Mako will deliver refined gold to Sailfish over a 240-month period. The delivery volume will scale, starting at 650 ounces per month and increasing to 1,000 ounces per month for the remainder of the term.

"With this transaction, we anticipate either securing lower-cost financing to return the majority of the US$112 million on our balance sheet to shareholders via dividends, or using the Sailfish Shares as lower-cost capital for accretive acquisitions, opening up the opportunity to do similar transactions with Sailfish in the future," said Akiba Leisman, CEO of Mako, in a statement.

Financial Mechanics of the Stream

As part of the consideration, Mako would receive 70 million common shares of Sailfish Royalty valued at $5.76 per share. This equity stake would result in Mako holding approximately 49% of Sailfish's outstanding shares. In exchange for the gold deliveries, Sailfish would pay 25% of the London Bullion Market Association (LBMA) PM Fix price for each ounce received.

Regulatory Requirements for Completion

Because the agreement involves related parties, the transaction is subject to Multilateral Instrument 61-101. This regulatory framework requires the following steps before the deal can close:

• Completion of an independent valuation of the assets involved.
• Obtaining formal fairness opinions to ensure the terms are equitable for all stakeholders.
• Securing approval from a majority of minority shareholders.

The proposed deal reflects a strategy by Mako to leverage its existing balance sheet, which currently holds US$112 million, to create liquidity. By transitioning to a streaming model, the company intends to optimize its capital structure by distributing cash to shareholders or using its newly acquired equity in Sailfish as currency for growth projects.