Metalla Royalty & Streaming Ltd (NYSEAMERICAN:MTA) (CVE:MTA) reported that it has completed the acquisition of a royalty on the Tocantinzinho project in Brazil, which is owned by Eldorado Gold (NYSE:EGO) (TSE:ELD).
Metalla acquired the existing 0.75% gross value royalty interest on the high-grade open pit gold deposit from Sailfish Royalty Corp (CVE:FISH) in consideration for US$9 million in cash.
Metalla also announced that Beedie Capital has elected to convert its outstanding C$5 million convertible loan facility into 505,050 common shares of Metalla at a conversion price of C$9.90 per share. Metalla noted that it has decided to drawn down an additional C$5 million under the convertible loan facility, which will be convertible at a price of C$14.30 per Metalla share.
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As well, Metalla said it sold 1,301,593 of its common shares under the at-the-market (ATM) equity program for gross proceeds of US$12.8 million, which will fund the Tocantinzinho royalty purchase in addition to its previously-announced royalty acquisition on OZ Mineral's CentroGold project in Brazil.
“We are pleased to see the continued support of Beedie Capital as we grow our business by adding more accretive royalties to Metalla's portfolio,” Metalla Royalty & Streaming CEO Brett Heath said in a statement.
“The additional drawdown of C$5 million from the Beedie Convertible Loan Facility along with gross proceeds from the ATM Program of $12.8 million, has allowed the company to fully finance the recent royalty acquisitions with a cash reserve to continue what we expect to be another significant year of growth.”
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.
Metalla said 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.
Contact Sean at sean@proactiveinvestors.com