Mako Mining Proposes 20-Year Gold Streaming Agreement With Sailfish

Mako Mining has signed a non-binding letter of intent for a 20-year gold streaming agreement with Sailfish Royalty. The transaction aims to lower Mako's cost of capital and provide flexibility for shareholder returns or future acquisitions. The deal, announced on September 11, 2026, involves Mako delivering refined gold to Sailfish in exchange for equity in the royalty firm.

"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.

Terms of the Streaming Agreement

Under the proposed terms, Mako Mining would commit to a 240-month delivery schedule. The volume of gold delivered would scale over time, starting at 650 ounces per month and increasing to 1,000 ounces per month in the latter stages of the agreement. In return, Sailfish Royalty would pay 25% of the London Bullion Market Association (LBMA) PM Fix price for each ounce received.

As consideration for the stream, Sailfish proposes to issue 70 million common shares to Mako at a price of $5.76 per share. If completed, this equity swap would result in Mako Mining holding approximately 49% of Sailfish Royalty's outstanding shares.

Regulatory Requirements for Related-Party Deals

Because both Mako Mining and Sailfish Royalty are controlled by Wexford Capital LP, the agreement is classified as a related-party transaction under Canadian Multilateral Instrument 61-101 (MI 61-101). This regulatory framework protects minority shareholders by ensuring that transactions between entities under common control are conducted on fair, arm's-length terms.

To move forward, the companies must comply with specific procedural requirements, including:

• Independent Valuations: Obtaining formal appraisals to confirm the fairness of the exchange.
• Disinterested Shareholder Approval: Securing a majority vote from shareholders who are not affiliated with the common controlling party, Wexford Capital.

Understanding Gold Streaming

Gold streaming is a financing mechanism where a company sells the rights to a portion of its future gold production at a fixed, discounted price in exchange for an upfront payment or equity. Unlike traditional debt financing, which requires regular interest payments and principal repayment, streaming agreements provide mining companies with immediate capital while linking the cost of that capital to production levels. For the streaming company, such as Sailfish, the benefit lies in acquiring metal at a discount to market prices, hedging against price volatility over the long term.