logo-loader
viewMetalla Royalty and Streaming Ltd

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

 

Quick facts: Metalla Royalty and Streaming Ltd

Price: 1.34 CAD

TSX-V:MTA
Market: TSX-V
Market Cap: $180.12 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Metalla Royalty and Streaming Ltd named herein, including the promotion by the Company of Metalla Royalty and Streaming Ltd in any Content on...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Metalla announces maiden dividend and record quarterly production

Brett Heath, president and CEO of Metalla Royalty and Streaming Ltd (CNSX:MTA) and independent director E.B. Tucker caught up with Proactive after announcing record quarterly production for the three months to the end of November. 158,865 ounces of silver was shipped and provisionally...

on 13/12/17

2 min read