Metalla Royalty & Streaming Ltd (CVE:MTA) says Beedie Capital will become a strategic investor in the group after the Vancouver-based company struck a convertible loan facility of $12 million with the latter.
The loan, which will fund new acquisitions of royalties and streams, will consist of an initial advance of $7 million within 90 days from closing.
READ THE BIG PICTURE: Metalla Royalty & Streaming enjoying high growth period as it expands portfolio
The remaining $5 million will be available for subsequent advances in minimum tranches of $1.25 million each.
"We are pleased to welcome Beedie as a partner and strategic investor in Metalla. Beedie has proven to be an exceptional capital partner for growing businesses. We look forward to having the financial support and backing of Beedie through our next stage of growth as we continue to add more accretive royalties to our portfolio," said Brett Heath, the president and CEO of Metalla.
The loan carries an interest rate of 8% on advanced funds and 2.5% on standby funds available.
The principal payment is due 48 months after the date the financing is completed. The principal amount will be convertible into Mettala shares at $1.39, representing a 25% premium to the 30-day volume weighted average price as of March 15, 2019.
"We are very excited to partner with the Metalla team at their inflection point of becoming a premier precious metals royalty company," said David Bell, director at Beedie Capital. "We are impressed by Metalla's ability to repeatedly identify and acquire highly accretive royalty assets and look forward to supporting them in their next phase of value creation for all of the company’s stakeholders."
Contact Giles at [email protected]
Follow him on Twitter@Gile74