MTA.V · 2020-02-18 12:00:00

Metalla Acquires an Existing 2.0% Gold Royalty on Teck / Newmont's Nuevaunión Project Unless otherwise specified, all references to dollars set forth herein shall mean United States (U.S.) dollars

Drill Results Mergers & Acquisitions Royalties & Streams

Metalla Acquires an Existing 2.0% Gold

Royalty on Teck / Newmont's Nuevaunión

Project

Unless otherwise specified, all references to dollars set forth herein shall mean United States

(U.S.) dollars

TSXV:

MTA

NYSE AMERICAN:

MTA

VANCOUVER

Feb. 18, 2020

/CNW/ -

Metalla Royalty & Streaming Ltd.

Metalla

" or the

Company

") (TSXV: MTA) (NYSE American: MTA) is pleased to announce that it has acquired a

2.0% net smelter return royalty ("

NSR

") on future gold production from a portion of the La Fortuna

deposit ("

Cantarito claim

") and prospective exploration grounds forming part of the NuevaUnión

project located in the Huasco Province in the Atacama region of

Chile

NuevaUnión

"). NuevaUnión

is jointly owned by Newmont Corporation ("

Newmont

") and Teck Resources Limited ("

Teck

"), and is

one of the largest undeveloped copper-gold-molybdenum projects in the world.

Brett Heath

, President and CEO of Metalla commented, "

We are pleased to add another high-

quality gold royalty on one of the world's premier copper-gold projects. NuevaUnión

is being

developed by two of the most prominent mining companies in the world, Teck and Newmont. This

transaction gives shareholders exposure to gold on a long-life asset on an accretive basis.

JOINT VENTURE STRUCTURE

Metalla has partnered with BatteryOne Royalty Corp. ("

BatteryOne

" and together with Metalla, the

Purchasers

") to jointly purchase the NSR such that Metalla will be entitled to all payments under

the NSR with respect to gold production, BatteryOne will be entitled to all payments under the NSR

with respect to copper production, and all other payments under the NSR will be split evenly

between the Purchasers. The total acquisition price will be

$8 million

to be satisfied in cash and

common shares of the Purchasers (the "

Purchase Price

"). Metalla has agreed to pay 25% of the

Purchase Price and BatteryOne will pay 75% of the Purchase Price in proportion to the underlying

commodity at the La Fortuna deposit. A total of

$3 million

in cash was paid by the Purchasers on

closing and the balance of the Purchase Price is

$1 million

in cash that is payable in one year from

the closing date and

$4 million

that is payable equally in cash and common shares of the Purchasers

upon the achievement of commercial production at the La Fortuna deposit (such common share price

of the Purchasers to be calculated based on a 10-day volume weighted average price as of the date

prior to issuance or cash in certain circumstances).

NUEVAUNIÓN

(1)

(2)

NuevaUnión is one of the largest undeveloped copper-gold-molybdenum projects in the Americas.

The project is located in the Atacama region of

Chile

and is comprised of two orebodies, Relincho

and La Fortuna, which are 40km apart. The two orebodies were combined to create NuevaUnión

which is owned 50/50 by Teck and Newmont.

The NSR covers the Cantarito claim which is part of the proposed open-pit La Fortuna deposit and

prospective exploration ground southeast. The Cantarito claim covers at least 8% of the tonnes at

La Fortuna and the approximate position in the proposed open-pit is shown below.

Cantarito claim on La Fortuna deposit (CNW Group/Metalla Royalty and Streaming Ltd.)

Newmont and Teck disclosed that NuevaUnión has:

La Fortuna – Reserves (100% basis)

(3)

Category

Tonnes

(millions)

Copper

Grade (%)

Contained

Metal (000 t)

Gold

Grade (g/t)

Gold (millions of

ounces)

Measured

0.4

0.56

0.47

0.006

Indicated

52.8

0.67

354

0.85

1.44

Inferred

377.0

0.51

1,923

0.55

6.67

A prefeasibility study was completed in early 2018 which showed production of 224,000 tonnes of

copper, 269,000 ounces of gold, and 1,700 tonnes of molybdenum on average over the first 5 years,

which incorporates key design changes to improve project economics and respond to input from

communities and Indigenous Peoples. A Feasibility Study was commenced in the third quarter of

2018 and as previously guided by Teck to be completed by first quarter of 2020 with a projected

2024 project startup date.

Notes:

(1)

La Fortuna was previously known as El Morro under the controlling ownership of Goldcorp and New Gold Inc.

(2)

See the Annual Report of Teck filed on SEDAR on March 13, 2019.

(3)

See the Annual Information Form of Teck filed on SEDAR and dated February 27, 2019.

(4)

Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

(5)

See the Annual Report of Teck filed on SEDAR on March 13, 2019.

August 2015

, Teck and Goldcorp (which was subsequently acquired by Newmont) announced an

agreement to combine their respective Relincho and La Fortuna projects into a single a 50/50 joint

venture, being Project NuevaUnión. This approach will provide a number of key benefits, including

reduced environmental footprint; lower cost and improved capital efficiency; optimized mine plan;

enhanced community benefits and greater returns over either standalone project.

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 was created for the purpose of providing shareholders with leveraged precious metal

exposure by acquiring royalties and streams. Our goal is to increase share value by accumulating a

diversified portfolio of royalties and streams with attractive returns. 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.

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

Except where otherwise stated, the disclosure in this press release relating to Project NuevaUnión

is based on information publicly disclosed by the owners or operators of this property and

information/data available in the public domain as at the date hereof and none of this information

has been independently verified by Metalla. Specifically, as a royalty holder, Metalla has limited, if

any, access to the property subject to the NSR. Although Metalla does not have any knowledge that

such information may not be accurate, there can be no assurance that such third party information

is complete or accurate. Some information publicly reported by the operator may relate to a larger

property than the area covered by Metalla's NSR interest. Metalla's royalty interests often cover

less than 100% and sometimes only a portion of the publicly reported mineral reserves, mineral

resources and production of a property.

The disclosure was prepared in accordance with Canadian National Instrument 43-101 ("NI 43-

101"), which differs significantly from the current requirements of the U.S. Securities and

Exchange Commission (the "SEC") set out in Industry Guide 7. Accordingly, such disclosure may

not be comparable to similar information made public by companies that report in accordance with

Industry Guide 7. In particular, this news release may refer to "mineral resources", "measured

mineral resources", "indicated mineral resources" or "inferred mineral resources". While these

categories of mineralization are recognized and required by Canadian securities laws, they are not

recognized by Industry Guide 7 and are not normally permitted to be disclosed in SEC filings by

U.S. companies that are subject to Industry Guide 7. U.S. investors are cautioned not to assume

that any part of a "mineral resource", "measured mineral resource", "indicated mineral resource",

or "inferred mineral resource" will ever be converted into a "reserve." In addition, "reserves"

reported by the Company under Canadian standards may not qualify as reserves under Industry

Guide 7. Under Industry Guide 7, mineralization may not be classified as a "reserve" unless the

mineralization can be economically and legally extracted or produced at the time the "reserve"

determination is made. Accordingly, information contained or referenced in this news release

containing descriptions of mineral deposits may not be comparable to similar information made

public by U.S. companies subject to the reporting and disclosure requirements of Industry Guide 7.

"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. Further, while NI 43-101

permits companies to disclose economic projections contained in preliminary economic

assessments and pre-feasibility studies, which are not based on "reserves", U.S. companies have

not generally been permitted under Industry Guide 7 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 reporting standards; however,

Industry Guide 7 normally only permits issuers to report mineralization that does not constitute

"reserves" by Industry Guide 7 standards as in-place tonnage and grade without reference to unit

measures. Historical results or feasibility models presented herein are not guarantees or

expectations of future performance.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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

achievement of commercial production and payments related thereto at Project NuevaUnion,

exploration potential, future development, production, recoveries and other anticipated or possible

future developments on the properties on which the Company holds royalty and stream interests or

relating to the companies owning or operating such properties; current and potential future

estimates of mineral reserves and resources; potential improvements of project economics and

anticipated cost of production; potential improvements to capital efficiency; future optimization of

mine plans; future cash generation; the timing of the sale or other disposition of companies or

mining properties; potential reduction of environmental impact; potential improvements to

community benefits; and the potential for Metalla to become one of the leading precious metal

royalty and streaming companies. 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: changes in commodity prices; lack of control over mining

operations; exchange rates; delays in or failure to receive payments; delays in construction; delays

in the sale of the mines; third party reporting; and the other risks and uncertainties disclosed under

the heading "Risk Factors" in the Company's most recent annual information form, annual report

on Form 40-F and other documents filed with or submitted to the Canadian securities regulatory

authorities on the SEDAR website at

www.sedar.com

and the U.S. Securities and Exchange

Commission on the EDGAR website at

www.sec.gov

. 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.

SOURCE

Metalla Royalty and Streaming Ltd.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/February2020/18/c6243.html

%SEDAR: 00005157E

For further 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 08:30e 18-FEB-20

← Back to feed