The US$4 million royalty is linked to two claims formally held by Atlantic, which covers the Egerton-Maclean, Hudson, 149 East Zone, and the majority of the Plenty deposit. Collectively, they are known as the Fifteen Mile Stream project (FMS) in Nova Scotia, Canada.
READ: Metalla Royalty & Streaming buys 1% net smelter royalty on Fifteen Mile Stream project for US$4M
The FMS project is being developed by Atlantic Gold as part of its multi-phase mine plan. According to Atlantic Gold, the FMS project is expected to produce approximately 80,000 ounces of gold in 2021 during its first year of production.
Metalla will satisfy the transaction with an upfront payment of $2.2 million in cash and more than 2.6 million company shares.
Shares of Metalla eased 1.9% at C$1.04 on Tuesday.