Metalla Completes Acquisition of 5% Royalty on Equinox Gold's Castle Mountain Gold Mine NYSE AMERICAN: MTA
Metalla Completes Acquisition of 5% Royalty on Equinox Gold's
Castle Mountain Gold Mine
NYSE AMERICAN:
MTA
TSX-V:
MTA
(All Currency is in
United States
(US$) dollars unless otherwise noted)
VANCOUVER, BC
,
Oct. 1, 2021
/CNW/ - Metalla Royalty & Streaming Ltd. ("
Metalla
" or the "
Company
") (NYSE American: MTA) (TSXV: MTA) is
pleased to announce that, further to its news release dated
September 13, 2021
, it has closed (the "
Closing
") the acquisition of an existing 5% net
smelter return royalty (the "
Royalty
") from an arm's length seller (the "
Seller
") on the South Domes portion of the Castle Mountain Gold mine
owned by Equinox Gold Corp. (NYSE: EQX; TSX: EQX).
On Closing, Metalla paid
$10 million
in cash to the Seller (the "
Closing Payment
") with the remaining
$5 million
of the purchase price to be paid
within twenty months from the closing date bearing interest at a rate of 4% per annum from the closing date.
FINANCIAL UPDATE
The Company has completed its previously announced drawdown of an additional
C$3 million
(the "
Drawdown Amount
") under its existing
amended and restated convertible loan facility (the "
Convertible Loan Facility
") with Beedie Capital ("
Beedie
"). The Drawdown Amount will accrue
interest at 8% per annum with the remaining
C$12 million
available to the Company under the Convertible Loan Facility subject to stand-by interest
of 1.5% per annum.
The Drawdown Amount is convertible by Beedie into common shares of Metalla ("
Common Shares
") at a conversion price of
C$11.16
which is
based on a 20% premium above the 30-day volume-weighted average price ("
VWAP
") of the Common Shares on the TSX Venture Exchange
calculated as of
September 30, 2021
, in accordance with the terms of the Convertible Loan Facility. Any Common Shares issued upon conversion
of the Drawdown Amount will be subject to a hold period elapsing on
February 2, 2022
.
The Drawdown Amount was used to fund a portion of the Closing Payment for the acquisition of the Royalty.
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.
(signed) "Brett Heath"
Website:
www.metallaroyalty.com
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements and forward-looking information within the meaning of
United States
and Canadian
regulations. 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 in this release include, but are not
limited to, statements with respect to the potential achievement of milestones and payments in connection therewith; the payment of the
remaining
$5 million
purchase price; the anticipated or possible future developments at
the
Castle Mountain Project and the properties on which
the Company currently holds royalty and stream interests or relating to the
companies owning or operating such properties; the
future value of the
Company
'
s stock; future cash generation; and the Company's potential to become a leading gold and silver company.
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 risk that the milestones may not be satisfied; risks associated with the impact of general business and
economic conditions; the absence of control over mining operations from which Metalla will purchase precious metals or from
which it will
receive stream or royalty payments and risks related to those mining operations, including risks related to
international operations, government
and environmental regulation, delays in mine development, construction and
operations, actual results of mining and current exploration
activities, conclusions of economic evaluations and changes in
project parameters as plans are refined; problems related to the ability to market
precious metals or other metals; industry
conditions, including commodity price fluctuations, interest and exchange rate fluctuations;
interpretation by government
entities of tax laws or the implementation of new tax laws; regulatory, political or economic developments in any of
the
countries where properties in which Metalla holds a royalty, stream or other interest are located or through which they are
held; risks related
to the operators of the properties in which Metalla holds a royalty or stream or other interest, including
changes in the ownership and control of
such operators; risks related to global pandemics, including the novel coronavirus
(COVID-19) global health pandemic, and the spread of other
viruses or pathogens; influence of macroeconomic
developments; business opportunities that become available to, or are pursued by Metalla;
reduced access to debt and
equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Metalla
holds a
royalty, stream or other interest; the volatility of the stock market; competition; future sales or issuances of debt or equity
securities; use
of proceeds; dividend policy and future payment of dividends; liquidity; market for securities; enforcement of
civil judgments; and risks relating to
Metalla potentially being a passive foreign investment company within the meaning of
U.S. federal tax laws; 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.
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SOURCE
Metalla Royalty and Streaming Ltd.
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%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:
CO: Metalla Royalty and Streaming Ltd.
CNW 16:43e 01-OCT-21