Metalla Royalty & Streaming Ltd (NYSEAMERICAN:MTA) (CVE:MTA) announced Monday that it has acquired a new royalty on the Tocantinzinho project owned by Eldorado Gold (NYSE:EGO) (TSE:ELD).
The Vancouver-based royalty firm bought the 0.76% gross value royalty interest via a royalty transfer agreement with Sailfish Royalty Corp (CVE:FISH) for US$9 million in cash, it said in a statement.
The royalty is on gold produced and sold from Tocantinzinho, a high-grade open pit gold deposit in the Tapajos district of Para state, northern Brazil.
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Tocantinzinho has an expected mine life of 10 years with an estimated annual gold production of 170,000 ounces at a US$580 per ounce cash cost.
"We are pleased to acquire another accretive royalty on a fully permitted, construction ready development project that covers over 2 million ounces of gold,” Metalla CEO Brett Heath said in a statement.
“Tocantinzinho is a large open pit project currently owned by Eldorado Gold that we believe has a clear path to production over the near term with exploration upside on its 280 square kilometer land package."
Metalla said that the project also boasts the nearby Santa Patricia satellite prospect that has the potential to be a porphyry system at depth. The royalty covers the entire Tocantinzinho project with 28,275 hectares of the land package surrounding the deposit, which includes part of Santa Patricia.
The agreement is expected to close by March 19.
Contact Angela at angela@proactiveinvestors.com
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