Metalla (OTCQX:MTAFF) Completed the Smelter Return Royalty on the Santa Gertrudis Gold Property

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								Metalla (OTCQX:MTAFF) Completed the Smelter Return Royalty on the Santa Gertrudis Gold Property

Metalla (OTCQX:MTAFF) Completed the Smelter Return Royalty on the Santa Gertrudis Gold Property

(TSXV: MTA) ($MTAFF) (FRANKFURT: X9CP)

Metalla Royalty & Streaming Ltd. (TSXV: MTA) (OTCQX: MTAFF) (FRANKFURT: X9CP) is pleased to announce that it has closed its previously announced acquisition of a 2% net smelter return royalty on the Santa Gertrudis gold property located north of Hermosillo in Sonora, Mexico from GoGold Resources Inc. for $12-M.

Brett Heath, President/CEO of Metalla said, “We are pleased to have completed this transaction to give our shareholders exposure to World-Class mining operator Agnico Eagle Mines Ltd. The Royalty on Santa Gertrudis will represent a long life and low-cost mine on an expansive land package that will translate into a future cornerstone asset in the Metalla royalty portfolio.”

Mr. Heath went on to say, “We also would like to welcome GoGold as a new shareholder. This transaction is a great example of our 3rd party royalty model at work, allowing holders of pre-existing royalties to maximize the value and maintain the exposure of the royalty through our equity.”

GoGold elected to accept $6-M of the purchase price by being issued common shares of Metalla at a deemed price of 0.78/per Metalla Share. The Share Consideration represents a total of 10,123,077 Metalla Shares with a pro forma interest of 9.9%. The Share Consideration will be subject to a 4-month hold period under applicable securities laws, rules of the TSX Venture Exchange  and further trading restrictions governed by the definitive agreement.

Metalla has also entered into loan agreements with a syndicate of arm’s length lenders for aggregate loan proceeds of $1,750,000. The proceeds from the Loan were used to pay, in part, the $6-M cash portion of the acquisition price for the Royalty. The balance of the acquisition price for the Royalty was paid from the Metalla’s cash reserves.

Following the completion of the Transaction, the Metalla’s issued and outstanding common shares are expected to be approximately 102-M, which includes 2.8-M Metalla common shares priced at 0.78 each to be issued pursuant to the automatic conversion of the convertible debenture held by Coeur Mining, Inc. The Convertible Debenture automatically converts into Metalla Shares at future financing’s, or asset acquisitions to maintain Coeur’s 19.99% until the outstanding principal is either converted in full or otherwise repaid. The remaining balance on the Convertible Debenture is expected to be $3.2-M the automatic conversion.

Metalla Royalty & Streaming was created to provide its shareholders with leveraged precious metal exposure by acquiring royalties and streams. Our goal is to increase share value by accumulating a diversified portfolio of royalties and streams with attractive returns.

Our strong foundation of current and future cash-generating asset base, combined with an experienced team gives Metalla a path to become one of the leading gold and silver companies for the next commodities cycle.

Brett Heath
President and CEO

Metalla Royalty & Streaming

For further information, please visit the company website at www.metallaroyalty.com

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