BRIEF

on Mako Mining Corp. (isin : CA56089A1030)

Mako Mining to Acquire Goldsource Mines, Bolstering Growth with a Diversified Gold Production Platform

Mako Mining Corp. and Goldsource Mines Inc. have announced a significant arrangement where Mako will acquire all outstanding Goldsource shares, creating a combined entity positioned for scalable and diversified gold production. This transaction brings together Mako’s profitable Nicaraguan operations with Goldsource’s Eagle Mountain Gold Project in Guyana, promising a mix of management skill, cash flow, and exploration potential aimed at accelerating growth.

Key highlights of this deal include the geographic diversification and the blending of high-grade, low-cost operations, which is predicted to enhance both the mineral endowment and exploration opportunities across Nicaragua and Guyana. Moreover, the integration leverages Mako’s experienced construction team to expedite Eagle Mountain’s development, forecasted for robust economics.

The transaction also underscores the synergies between Mako and Goldsource’s assets, leveraging geological similarities to optimize operational risk and costs. The combined operation is expected to be led by a strengthened management team, focusing on unlocking value and driving accretive growth.

For Goldsource shareholders, the transaction brings a considerable upfront premium, access to enhanced cash flow for rapid project advancement, and engagement in a more substantial exploration initiative. Mako shareholders, in turn, will benefit from the addition of the promising Eagle Mountain project in a mining-friendly jurisdiction, expected to notably boost Mako’s operational scope and financial metrics.

Subject to regulatory and shareholder approvals, this acquisition is anticipated to redefine the companies' growth strategies, offering a path to over 100,000 ounces per year of gold production. The boards of both companies have unanimously recommended the transaction, which is slated for completion in Q2 2024.

R. H.

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