Tortola, British Virgin Islands--(Newsfile Corp. - September 14, 2026) - Sailfish Royalty Corp. (TSXV: FISH) (OTCQB: SROYF) (the "Company" or "Sailfish") is pleased to announce that it has entered into a non-binding letter of intent dated September 11, 2026 (the "LOI") with Mako Mining Corp. ("Mako") a non-arm's length party. The proposed transaction with Mako (the "Transaction"), is expected to enable Sailfish to pay a gold linked dividend in the aggregate equivalent to one ounce of gold per year for every 18,000 shares owned paid quarterly in arrears. In addition, the Company plans to pay a special dividend of US$1.00 per common share of Sailfish (each, a "Share") following closing of the Transaction.
Paolo Lostritto, CEO, stated, "This transaction, coupled with the anticipated enhancement to our dividend policy, is expected to increase Sailfish's leverage to the gold price and should allow its shareholders to have direct exposure to the current gold market through our dividend. Importantly, this transaction sets the foundation for a broader relationship between Sailfish and producing gold companies. We intend to build on this model through the potential for future transactions that could increase the gold- linked dividend payment."
The LOI sets out the terms and conditions pursuant to which Sailfish will purchase from Mako, refined gold ("Refined Gold") over a term of 240 months (the "Term") beginning on the first day of the month immediately following the Transaction's closing date with the following structure:
- until August 1, 2028 ("Part 1"), 650 troy ounces of Refined Gold per month;
- immediately following Part 1, until February 1, 2031 ("Part 2"), 750 troy ounces of Refined Gold per month;
- immediately following Part 2, until February 1, 2037 ("Part 3"), 900 troy ounces of Refined Gold per month; and
- immediately following Part 3, for the remainder of the Term, 1,000 troy ounces of Refined Gold per month.
In consideration for the Transaction, Sailfish will issue to Mako an aggregate of 70,000,000 Shares at a price per Share equal to $5.76 (based on a 5-day VWAP ending on the trading day immediately prior to signing the LOI). In addition to a statutory hold period of four months and one day from the date of issuance, the Shares will be subject to contractual restrictions on transfer for a period of 12 months, with 50% of the Shares being released from such restrictions every 6 months following the issuance of the Shares. Mako has also agreed to certain restrictions on the sale and voting of the Shares. Following the issuance of the Shares to Mako, it is anticipated that Mako will hold approximately 48.54% of the issued and outstanding Shares of the Company.
For each ounce of refined gold delivered, Sailfish will pay to Mako, using its working capital, a price equal to 25% of the London Bullion Market Association PM Fix price on the date of delivery. Mako may satisfy its unconditional obligations in respect of the delivery of all or a portion of the payable gold through the delivery of refined gold from any source (excluding the Mt. Hamilton Gold Silver Project), including the delivery of any London Bullion Market Association gold delivery bars in the relevant quantity.