Mako Mining and Silver Crown Royalties
When Mako Mining bought the Moss mine in northwestern Arizona out of bankruptcy, one of the potential value drivers was eliminating all the streams and royalty encumbrances placed on the asset by the previous owner. The silver stream is gone. As of now, there are two remaining royalties on Moss:
- Patriot Gold owns a 3% NSR
- Sandstorm Gold has a 1% NSR
Mako CEO Akiba Leisman tells me all sides have acknowledged the ability for the bankruptcy court judge to issue a summary judgement in the case. “Discovery should be complete next week. Sandstorm is first on the docket, and I would expect to hear back in 45 days.”
Leisman says Mako is open to settling the case. Interesting note: I tried calling Patriot and got a full voicemail … just because a company is listed doesn’t mean there’s anyone home.
Fun fact: Running a royalty business isn’t just about cashing cheques … you have to make sure those cheques don’t bounce! From the second-quarter financial results of $19-million market cap royaltyco Silver Crown Royalties:
- $140,500 in outstanding payments from Gold Mountain Mining
- $541,756 in minimum accrued payments from Pilar Gold are due and delayed
Gold Mountain is in receivership and the Elk mine is a disaster. That money is gone. Pilar Gold will presumably pay when they restart operations PGDM Complex in Brazil sometime in the fourth quarter. I’ve never seen a company make it harder to determine what assets they own.
Who lists their royalties by geographic co-ordinates rather than naming companies and stream/royalty terms? I was interested in learning more about Kuya/Bethania, but that itch has passed. I’m sure everything is documented in a filing, but this is a clown move.
