Mako Mining Corp. (NASDAQ: MAKO) has signed a non-binding letter of intent with Sailfish Royalty Corp. to sell a long-term gold stream over a 240-month term, according to a company statement. The LOI was dated September 11, 2026.

Under the proposed terms, Sailfish would purchase refined gold from Mako in escalating monthly quantities: 650 troy ounces per month until August 1, 2028; 750 ounces per month until February 1, 2031; 900 ounces per month until February 1, 2037; and 1,000 ounces per month for the remainder of the term. Sailfish would pay Mako 25% of the London Bullion Market Association PM Fix price per ounce at the time of delivery.

As consideration, Sailfish would issue 70,000,000 of its common shares to Mako at $5.76 per share, based on a five-day volume-weighted average price. Upon completion, Mako would hold approximately 49% of Sailfish's issued and outstanding common shares.

Both Mako and Sailfish are controlled by Wexford Capital LP, making the transaction a related party transaction under Multilateral Instrument 61-101. As a result, Mako is required to obtain an independent formal valuation and minority shareholder approval. The company's board has appointed an independent special committee consisting of John Hick, Mario Caron, and Laurie Gaborit to evaluate the transaction.

Sailfish has stated it intends to amend its dividend policy following closing so that holders of every 18,000 common shares would receive the cash equivalent of one ounce of gold per year, payable quarterly.

CEO Akiba Leisman said the transaction is expected to support acquisition activity and shareholder returns, noting the company holds approximately $112 million in cash and securities as of June 30, 2026.

The transaction remains subject to negotiation of a definitive gold purchase agreement, board and special committee approvals, TSX Venture Exchange approval, and shareholder votes at both companies. No assurance has been given that the transaction will close on the proposed terms or at all.