Proactive Investors - Run By Investors For Investors

Metalla Royalty & Streaming completes royalty acquisition from Alamos Gold

The new package includes eight royalties in Canada, six in Peru, three royalties in Mexico and one in Chile
gold bars on US dollars
The new acquisition increases Metalla’s portfolio to 43 royalties and streams

Metalla Royalty & Streaming Ltd (CVE:MTA) (OTCMKTS:MTAFF) announced Wednesday that the company completed on the first closing on its acquisition of Alamos Gold’s royalty portfolio.

The new acquisition of 16 royalties and two options increases Metalla’s portfolio to 43 royalties and streams.

WATCH: Metalla Royalty secures financing and does major deal with with Alamos Gold

Alamos is one of the premier gold producers in North America, with a market cap of C$2.7 billion, and after closing the deal, will hold around 6.3% of Metalla's capital.

The new package includes eight royalties in Canada, six in Peru, three royalties in Mexico and one in Chile.

The company said that additional royalties in Alamos portfolio, which are subject to rights of first refusal, consents and future options, will be acquired pursuant to a second or additional closings.

Highlights of package

Highlights of the new royalties include a 2% NSR (net smelter royalty) on the El Realito property owned and operated by Agnico Eagle, adjacent to its operating La India mine.

There is also a 1.5% NSR on the Wasamac Mine currently under development by Monarch Gold, 15 km west of Rouyn-Noranda in Quebec.

Metalla has also bought an option to purchase a 1% NSR royalty on the La Fortuna Mine currently under development by Minera Alamos located in Durango State, Mexico.

It has also bought a 1% NSR royalty on the producing Beaufor Mine operated by Monarch Gold, which lies 20km northeast of Val d'Or, Quebec. Since 1933, Beaufor has produced more than 1.16 Moz (million ounces) at a historical grade of 7.5g/t gold.

Another highlight is the 1% NSR on the San Luis property owned by SSR Mining, which liens in the Ancash Department in central Peru.

The project has mineral reserves of 7.2 million ounces of silver at an average grade of 447.2 g/t (grams per ton) and 0.29 million ounces of gold at a grade of 18.06 g/t as at the end of 2016.

Share consideration

As consideration for the new portfolio, Metalla will issue over 8.23 million shares at C$1.30 each for a total of US$8 million.

Shares of Metalla closed Tuesday in Canada at C$1.16 and in the US at US$0.86.

Giles Gwinnett also contributed to this report

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas


View full MTA profile View Profile

Metalla Royalty and Streaming Ltd Timeline

Related Articles

June 13 2018
Lac Guéret Extensions is adjacent to one of the highest grade graphite projects in the world
Lithium cube
December 07 2018
The resource exploration and development company looks to supply the rapidly growing lithium-ion battery industry for both mobile devices and laptops, as well as the burgeoning electronic-vehicle industry
Piedmont's Carolina location map, showing nearby mines and lithium processing facilities
April 22 2019
Piedmont Lithium is a large landholder in North Carolina pursuing regulatory approvals for its Piedmont US-lithium project.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use