Metalla Acquires Additional Royalty on St Barbara's Fifteen Mile Stream Project and Completes Drawdown on Beedie Convertible Loan Facility
Metalla Acquires Additional Royalty on St
Barbara's Fifteen Mile Stream Project and
Completes Drawdown on Beedie Convertible
Loan Facility
TSXV: MTA
OTCQB: MTAFF
All amounts expressed in Canadian Dollars unless otherwise noted
VANCOUVER
,
Aug. 7, 2019
/CNW/ -
Metalla Royalty & Streaming Ltd.
("
Metalla
" or the
"
Company
") (TSXV: MTA) (OTCQB: MTAFF) is pleased to announce that the Company has
entered into a purchase and sale agreement (the "
Royalty Purchase Agreement
") to acquire a
3.0% NSR royalty (the "
Royalty
") on St Barbara Ltd. ("
St Barbara
") Fifteen Mile Stream project for
$2 million
(the "
Royalty Transaction
") from a third party (the "
Seller
"). The purchase price will be
satisfied by an upfront payment of
$0.5 million
in cash, with an additional up to
$1.5 million
payable
upon the exercise of the Royalty payor's buy-back right to purchase two-thirds of the 3% NSR
Royalty for a period of five years. The Royalty covers six claims which comprise of the western half
of the Plenty Zone and portions of the Seloam Brook prospect. The Plenty Zone along with
Hudson
and Egerton-McClean, collectively comprise of the Fifteen Mile Stream project ("
FMS Project
")
located in
Nova Scotia, Canada
.
The Company is also pleased to announce its drawdown of
$7 million
(the "
Drawdown
") under the
$12 million
convertible loan facility with Beedie Investments Limited. The Drawdown will be used to
repay certain shareholder loans totaling
US$2 million
, as well as funding future royalty acquisitions.
Brett Heath
, President, and CEO of Metalla commented, "The Plenty Zone royalty is a great addition
to the portfolio. It completes our royalty exposure over the entire Fifteen Mile Stream project and
adds highly prospective exploration ground along strike to the east and south of the Plenty Zone."
Mr. Heath continued, "with the initial drawdown of the Beedie facility, Metalla is now well positioned
to execute on more accretive royalty acquisitions."
FIFTEEN
MILE STREAM
Fifteen
Mile Stream
was recently acquired by St Barbara (ASX: SBM) through its takeover of
Atlantic Gold on
July 19, 2019
for
$802 million
. The FMS Project located 57km northeast of Atlantic
Gold's central milling facility at Touquoy and is readily accessible by highway. The project lies along
the same geological trend as other related deposits – Touquoy,
Beaver Dam
and
Cochrane Hill
. All
are hosted within the same critical stratigraphy and structure, over a strike length of 80 km.
The previous owner Atlantic Gold reported by
press release dated
March 13, 2019
, an updated
mineral resource estimate after recent drilling campaigns at its Touquoy, 15 Mile Stream, and
Cochrane Hill
deposits. Following the drilling of 35,710 metres since the last resource estimate at
the FMS deposit (see technical report titled "
Moose River Consolidated Project,
Nova Scotia,
Canada
, NI 43-101 Technical Report on Moose River Consolidated Phase 1 and 2 Expansion
" with
an effective date of
January 24, 2018
), Atlantic Gold reported an increase of 47% or 216,000 oz. for
a total of 677,000 oz. of contained gold ("Au") between the three deposits of Egerton-MacLean,
Hudson
, and Plenty.
FIFTEEN MILE STREAM MINERAL RESOURCE ESTIMATE
Measured &
Indicated
Au
Grade
Contained
Au
Inferred
Au
Grade
Contained
Au
Pit Constrained
Resources
(Kt)
(g/t)
(Koz)
(Kt)
(g/t)
(Koz)
Egerton-MacLean
14,600
1.16
544
1,400
1.24
56
Hudson
1,800
0.78
45
400
1.01
13
Plenty
2,700
1.01
88
300
1.56
15
Total
19,100
1.10
677
2,100
1.24
84
St Barbara has stated intends to continue to explore FMS in 2019 to expand the resource base and
convert to reserves with a significant focus on the 149 Deposit. This was the first discovery of the
Corridor Regional Program. A drill program of 6,000 metres was conducted to test the connections
between the Egerton-MacLean Zone and the newly-discovered 149 Deposit located two (2)
kilometres to the north-east, which was omitted from the recent estimate. St Barbara has stated
intends to establish a mineral resource at the 149 Deposit in 2019.
ROYALTY PURCHASE AGREEMENT
Pursuant to the Royalty Purchase Agreement, Metalla and the Seller will enter into an assignment
and assumption agreement under which the Royalty will be transferred from the Seller to Metalla.
Metalla expects to close the purchase of the Royalty on or about
August 14, 2019
and closing of the
Transaction is subject to customary closing conditions.
The Royalty Purchase Agreement was negotiated at arm's length between Metalla and the Seller.
No brokerage or finder's fees were paid in association with the acquisition of the Royalty.
QUALIFIED PERSON
The technical information contained in this news release has been reviewed and approved by
Charles Beaudry
, geologist M.Sc., member of the Association of Professional Geoscientists of
Ontario
and the Ordre des Géologues du Québec and a consultant to Metalla. Mr. Beaudry is a
Qualified Person as defined in "National Instrument 43-101
Standards of disclosure for mineral
projects
".
ABOUT METALLA
Metalla is a precious metals royalty and streaming company. Metalla provides shareholders with
leveraged precious metal exposure through a diversified and growing portfolio of royalties and
streams. Our strong foundation of current and future cash-generating asset base, combined with an
experienced team gives Metalla a path to become one of the leading gold and silver companies for
the next commodities cycle.
For further information, please visit our website at
www.metallaroyalty.com
ON BEHALF OF METALLA ROYALTY & STREAMING LTD.
(signed) "Brett Heath"
President and CEO
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the
Exchange) accept responsibility for the adequacy or accuracy of this release.
Technical and Third-Party Information
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking information" and "forward-looking statements" within
the meaning of applicable Canadian and U.S. securities legislation. The forward-looking
statements herein are made as of the date of this press release only, and the Company does not
assume any obligation to update or revise them to reflect new information, estimates or opinions,
future events or results or otherwise, except as required by applicable law.
Often, but not always, forward-looking statements can be identified by the use of words such as
"plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts",
"projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative
variations) of such words and phrases or may be identified by statements to the effect that certain
actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-
looking statements and information include, but are not limited to, statements with respect to the
transactions contemplated under the Royalty Purchase Agreement, anticipated cash flows and
production upon completion of the Royalty Transaction, the completion of the Royalty Transaction,
proposed future transactions Metalla may undertake and their expected timing and statements of St
Barbara's regarding its intentions for FMS and 149 Deposit. Forward-looking statements and
information are based on forecasts of future results, estimates of amounts not yet determinable
and assumptions that, while believed by management to be reasonable, are inherently subject to
significant business, economic and competitive uncertainties, and contingencies. Forward-looking
statements and information are subject to various known and unknown risks and uncertainties,
many of which are beyond the ability of Metalla to control or predict, that may cause Metalla's
actual results, performance or achievements to be materially different from those expressed or
implied thereby, and are developed based on assumptions about such risks, uncertainties and
other factors set out herein, including but not limited to: the requirement for regulatory approvals
and third party consents, the impact of general business and economic conditions, the absence of
control over the mining operations from which Metalla will purchase gold and receive royalties,
including risks related to international operations, government relations and environmental
regulation, the inherent risks involved in the exploration and development of mineral properties;
the uncertainties involved in interpreting exploration data; the potential for delays in exploration or
development activities; the geology, grade and continuity of mineral deposits; the possibility that
future exploration, development or mining results will not be consistent with Metalla's expectations;
accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties or
interruptions in operations; fluctuating metal prices; unanticipated costs and expenses;
uncertainties relating to the availability and costs of financing needed in the future; the inherent
uncertainty of production and cost estimates and the potential for unexpected costs and expenses,
commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental
regulatory restrictions; liability, competition, loss of key employees and other related risks and
uncertainties. Metalla undertakes no obligation to update forward-looking information except as
required by applicable law. Such forward-looking information represents management's best
judgment based on information currently available. No forward-looking statement can be
guaranteed, and actual future results may vary materially. Accordingly, readers are advised not to
place undue reliance on forward-looking statements or information. Some of the disclosure in this
press release is based on information publicly disclosed by the owners or operators of these
properties and information/data available in the public domain as at the date hereof, and none of
this information has been independently verified by Metalla.
Resource and reserve estimates
All resource estimates included in this news release have been prepared in accordance with
Canadian National Instrument 43-101 ("NI 43-101") and the Canadian Institute of Mining and
Metallurgy Classification System. NI 43-101 is a rule developed by the Canadian securities
administrators, which establishes standards for all public disclosure an issuer makes of scientific
and technical information concerning mineral projects. Canadian standards, including NI 43-101,
differ significantly from the requirements of Industry Guide 7 of the United States Securities and
Exchange Commission (the "SEC"), and resource information contained in the documents
incorporated by reference into this Registration Statement may not be comparable to similar
information disclosed by U.S. companies. In particular, and without limiting the generality of the
foregoing, the term "resource" does not equate to the term "reserves." Under SEC Industry Guide 7
standards, mineralization may not be classified as a "reserve" unless the determination has been
made that the mineralization could be economically and legally produced or extracted at the time
the reserve determination is made. The SEC's disclosure standards in Industry Guide 7 normally
do not permit the inclusion of information concerning "measured mineral resources," "indicated
mineral resources" or "inferred mineral resources" or other descriptions of the amount of
mineralization in mineral deposits that do not constitute "reserves" by U.S. standards under
Industry Guide 7 in documents filed with the SEC. U.S. investors should also understand that
"inferred mineral resources" have a great amount of uncertainty as to their existence and great
uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of
an "inferred mineral resource" will ever be upgraded to a higher category. Under Canadian rules,
estimated "inferred mineral resources" may not form the basis of feasibility or pre-feasibility
studies except in rare cases. Investors are cautioned not to assume that all or any part of an
"inferred mineral resource" exists or is economically or legally mineable. U.S. companies have not
generally been permitted to disclose economic projections for a mineral property in their SEC
filings prior to the establishment of "reserves." Disclosure of "contained ounces" in a resource is
permitted disclosure under Canadian regulations; however, the SEC's Industry Guide 7 normally
only permits issuers to report mineralization that does not constitute "reserves" by SEC Industry
Guide 7 standards as in-place tonnage and grade without reference to unit measures. In addition,
this news release may include information regarding adjacent or nearby properties on which we
have no royalties. Information concerning mineral deposits set forth herein may not be
comparable with information made public by companies that report in accordance with
United
States
standards.
Readers are cautioned that forward-looking statements are not guarantees of future performance.
All of the forward-looking statements made in this press release are qualified by these cautionary
statements.
SOURCE
Metalla Royalty and Streaming Ltd.
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For further information:
CONTACT INFORMATION: METALLA ROYALTY & STREAMING LTD.,
Brett Heath, President & CEO, Phone: 604-696-0741, Email: [email protected]; Kristina
Pillon, Investor Relations, Phone: 604-908-1695, Email: [email protected], Website:
www.metallaroyalty.com
CO: Metalla Royalty and Streaming Ltd.
CNW 08:00e 07-AUG-19