Mako Financing Update VANCOUVER, BC, July 2, 2020 /CNW/ - Mako Mining Corp. (TSX-V: MKO) (OTCQB: MAKOF) ("Mako" or the "Company") is pleased to announce that Wexford Capital LP has elected to exercise its participation right, pursuant to the investor rights agreement between the Company and Wexford dated November 9, 2018, in connection with the Company's previously announced C$28.4 million private placement offering (the "Offering") (see Company's press release dated June 26, 2020). Wexford Spectrum Trading Limited and Wexford Catalyst Trading Limited, funds managed by Wexford Capital LP (collectively, "Wexford"), have agreed to purchase, on a non-brokered private placement basis, an aggregate of 41,000,000 units of Mako under the Offering, at a subscription price of C$0.40 per Unit, for aggregate proceeds of C$16,400,000, having the same terms as the Units under the bought deal portion of the Offering.
The net proceeds from Wexford will be used to fund (i) the remaining capital expenditures at the San Albino Gold Project in Nicaragua, (ii) exploration expenditures; and (iii) working capital and general corporate purposes.
The Offering is scheduled to close on July 16, 2020, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals including the approval of the TSX Venture Exchange.
The issuance and sale of the Units to Wexford is considered to be a "related party transaction" within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company intends to rely on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such issuance and sale to Wexford as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves Wexford, is expected to exceed 25% of the Company's market capitalization (as determined under MI 61-101).