Metalla Adds Royalty on Agnico Eagle's Santa Gertrudis Gold Property
Metalla Adds Royalty on Agnico Eagle's Santa
Gertrudis Gold Property
TSXV:
MTA
OTCQX:
MTAFF
Frankfurt
:
X9CP
VANCOUVER
,
Sept. 5, 2018
/CNW/ -
Metalla Royalty & Streaming Ltd.
("
Metalla
" or the
"
Company
") (TSXV: MTA) (OTCQX: MTAFF) (FRANKFURT: X9CP) is pleased to announce that it
has entered into a purchase and sale agreement (the "
Agreement
") to acquire a 2% net smelter
return royalty (the "
Royalty
") on the
Santa Gertrudis
gold property located north of
Hermosillo
in
Sonora, Mexico
("
Property
") from GoGold Resources Inc. ("
GoGold
") for
US$12 million
in cash.
The Agreement is subject to a Right of First Refusal ("
ROFR
") held by the owner of the Property,
Agnico Eagle Mines Limited ("
Agnico
"). Agnico has 45 days (the "
Offering Period
") to exercise its
ROFR. If Agnico fails to respond or waives its ROFR during the Offering Period, then Agnico will be
deemed to have refused the offer.
GoGold, at its option, has the right to take
US$6 million
of the purchase price in Metalla shares at a
deemed price of
CAD$0.78
per share. Such shares will be subject to a 4 month hold period under
applicable securities laws and the rules of the TSX Venture Exchange. In addition to the ROFR, the
completion of the acquisition is subject to customary conditions including the approval of the TSX
Venture Exchange. Closing is expected to occur by the second half of Q4 2018.
Mr.
Brett Heath
, President and Chief Executive Officer of Metalla commented, "This acquisition
enhances Metalla's strong development pipeline and adds a second royalty with Agnico as its
counterparty, one of the premier gold mining companies in the world."
SANTA GERTRUDIS
GOLD PROPERTY
Santa Gertrudis
is the most recent acquisition by Agnico which closed in
November 2017
for
US$80
million
(
CAD$105 million
) in cash. In addition to the cash consideration, GoGold retained a 2% NSR
on the Property, 1% of which can be bought back at any time for
US$7.5 million
. Metalla views the
Property as having strong resource expansion potential on its large 42,000-hectare land package.
The Property produced over 550,000 ounces of gold in the 1990's at an average head grade of 2.13
g/t gold.
Since Agnico has acquired the Property, they have started an initial drilling program that consists of
28,000 metres with a budget of approximately
$9.5 million
, focused on the evaluation of known
mineralized zones with an updated PEA expected in 2019.
Northern Sonora Mexico
, where the Property is located, has three northwest-trending mineralization
corridors, which each have distinctive regional geological features.
Santa Gertrudis
covers a
potential strike length of 25 km of the favourable Cretaceous-age Intra-caldera sedimentary belt.
The mineralized deposits form trends that are hosted mainly by the sedimentary Mural Formation but
are not restricted to this unit. There is a distance of 18 km between the northernmost and
southernmost mineralized deposits with the balance remaining to be explored.
In 2014, GoGold published a mineral resource estimate as summarized in the following table:
Santa Gertrudis Mineral Resources
(1-5)
Indicated
Inferred
Type
Cut-off
Au g
(1)
kTonnes
Au
g/t
Au
kOunces
kTonnes
Au
g/t
Au
kOunces
Oxide
0.16
22,072.3
1.06
751.2
6,696.8
0.96
207.1
Mixed
0.25
815.8
1.47
38.5
851.5
1.44
39.4
Sulphide
0.60
174.2
1.90
10.6
4.2
2.32
0.3
Amelia Pads
0.20
244.3
1.19
9.4
192.5
1.25
7.7
Total
23,306.6
1.08
809.7
7,745.0
1.02
254.5
(1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate
of mineral resources may be materially affected by environmental,
permitting, legal, title, taxation, sociopolitical,
marketing, or other relevant issues.
(2)The mineral resources in this estimate were calculated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources
and Reserves, Definitions and Guidelines as prepared by the CIM Standing Committee on Reserve Definitions, as well as the requirements of National Instrument 43-101.
(3)All resources are reported within an optimized pit shell developed using the following economic parameters: Gold Price $1,300 per ounce. G&A cost $0.80 per tonne. Mining
cost $1.40 per tonne. Processing cost $4.00 per tonne for oxides, carbonaceous oxides and mixed oxide/sulphide deposits, and $22.00 per tonne for sulphides. Process
recoveries used are 75% for oxides and leach pad material, and 50% for mixed oxide/sulphide deposits, and 90% for sulphides. Optimized pit slopes are 50 degrees.
(4) The mineral resource table incorporates 35 deposits and associated optimized pit shells as well as three leach pads.
(5) TECHNICAL REPORT, UPDATED RESOURCE ESTIMATE ON THE SANTA GERTRUDIS GOLD PROPERTY, SONORA STATE, MEXICO FILED ON SEDAR ON AUGUST 1, 2014 BY
GOGOLD RESOURCES INC
QUALIFIED PERSON
The scientific and technical information contained in this press release has been reviewed by
Charles
Beaudry
, M.Sc., P.Geo. and géo., a qualified person within the meaning of NI 43-101.
ABOUT METALLA
Metalla was created to provide 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.
"Brett Heath"
President and CEO
Technical and Third-Party Information
Except where otherwise stated, the disclosure in this press release relating to the Santa Gertrudis
Property is based on information publicly disclosed by the owner or operator 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 Royalty. 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 royalty 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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This release contains certain "forward looking statements" and certain "forward-looking
information" as defined under applicable Canadian and U.S. securities laws. Forward-looking
statements and information can generally be identified by the use of forward-looking terminology
such as "may", "will", "should", "expect", "intend", "estimate", "anticipate", "believe", "continue",
"plans" or similar terminology.
Forward-looking statements and information include, but are not limited to, statements with respect
to the transactions contemplated under the
Santa Gertrudis
royalty transaction, anticipated cash
flows upon completion of the Transaction, the completion of the Transaction and proposed future
transactions Metalla may undertake and their expected timing. 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.
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.
SOURCE
Metalla Royalty and Streaming Ltd.
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%SEDAR: 00005157E
For further information:
CONTACT INFORMATION: Metalla Royalty & Streaming Ltd., Brett
Heath, President, and 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 05-SEP-18