04:40 PM EDT, 09/03/2020 (MT Newswires) -- Karora Resources (KRR.TO) on Thursday said it closed the US$18 million repurchase of a portion of a royalty on production at its Beta Hunt mine in Australia from Maverix Metals (MMX.TO), cutting the royalty to 4.75% from 7.5%.

Kakora said US$15.5 million has been paid to Maverix, with the remaining US$2.5 million due in January, 2021.

"Having now materially reduced the royalty burden at Beta Hunt, we are excited to move forward with our exploration program underground. This transaction has the potential to unlock significant value for both Karora and Maverix shareholders by allowing our strong operational team to develop Beta Hunt to its full potential," chief executive Paul Andre Huet said in a release.

Kakora shares closed down C$0.04 to C$3.41 on the Toronto Stock Exchange.