METALLA PROVIDES UPDATE ON GOSSELIN & CÔTÉ ROYALTY AND 2024 CATALYSTS Beedie Capital to increase equity ownership to 9.99% with additional C$1.5 million investment
METALLA PROVIDES UPDATE ON GOSSELIN & CÔTÉ
ROYALTY AND 2024 CATALYSTS
Beedie Capital to increase equity ownership to 9.99% with additional
C$1.5 million
investment
(All dollar amounts are in
United States
dollars unless otherwise indicated, except for per share amounts)
TSXV:
MTA
NYSE AMERICAN:
MTA
VANCOUVER, BC
,
Feb. 26, 2024
/CNW/ -
Metalla Royalty & Streaming Ltd.
("
Metalla
") (NYSE American: MTA) (TSXV: MTA)
is pleased to report the 2024 portfolio catalysts and the updated Mineral Resource estimates for Gosselin, where Metalla holds a
1.35% Net Smelter Return ("
NSR
") royalty that covers the northern portion of Côté and 100% of the Gosselin deposit.
IAMGOLD Corporation ("
IAMGOLD
") (TSX: IMG) (NYSE: IAG) announced by press release on
February 15, 2024
1
that the
updated Gosselin Mineral Resource estimate increased, for a total of 4.4 million Indicated gold ounces in 161.3 million tonnes
("Mt") at 0.85 grams per tonne gold ("g/t Au"), and 3.0 million Inferred ounces (123.9 Mt at 0.75 g/t Au). This represents an
estimated increase of 1.1 million ounces in Indicated and 1.3 million ounces in Inferred, representing a 32% and 74% increase
respectively.
Brett Heath
, President & CEO of Metalla commented,
"Gosselin continues to show that it has potential to become a very
significant asset. In 2023 we saw an increase of 2.4 million ounces from 57 diamond drill holes totaling 34,790 meters. Gosselin
stands as a substantial deposit on its own with 7.4 million ounces. Combined with Côté, they host an estimated Measured and
Indicated Mineral Resource of 16.5 million ounces, and an additional 4.2 million ounces of Inferred resources. This places the
project in an elite league among global gold mines of large scale. In the upcoming year, IAMGOLD indicated that it will focus on
further exploration with a 35,000-meter drill hole program at Gosselin, aiming to probe potential extensions of the breccias
between resource pits, as well as delving deeper beneath the mineralized envelopes to ascertain the full extent of these
promising deposits."
According to IAMGOLD, drilling to date suggests the Gosselin deposit has the potential to approach similar dimensions as the
adjacent Côté deposit. Drill intercepts obtained from the newly discovered West Breccia have significantly expanded this breccia
body which now measures 250 meters by 170 meters and extends for a depth of approximately 400 meters. This has helped to
highlight a highly prospective corridor at depth measuring up to 850 meters in strike length that remains to be tested between the
Gosselin West Breccia and the Côté Deposit hydrothermal breccia. This represents a priority exploration opportunity to further
expand the Gosselin resource below the 600-meter vertical depth extent of the current 2023 resources pit shell.
Longitudinal section Cote Gosselin (CNW Group/Metalla Royalty and Streaming Ltd.)
CÔTÉ & GOSSELIN RESERVE & RESOURCE ESTIMATE AS OF
DECEMBER 31, 2023
1
Côté
Gosselin
Tonnes
Gold
Tonnes
Gold
Royalty
GEOs
(000's)
(g/t)
(000's)
(000's)
(g/t)
(000's)
(000's)
Proven & Probable
234,644
1.01
7,610
-
-
-
6.2
Measured & Indicated
444,773
0.84
12,067
161,300
0.85
4,420
69.4
Inferred Resources
60,591
0.61
1,184
123,900
0.75
2,980
41.2
For royalty ounce calculation, Metalla estimates 6% of Côté and 100% of Gosselin's Mineral Resources and Mineral Reserves are subject to our royalty interest at a rate of 1.35%.
2024 Portfolio Catalysts
2
:
G Mining Ventures Tocantinzinho production expected in H2 2024 (0.75% GVR)
Agnico Eagle Mines Amalgamated Kirkland first production anticipated in H2 2024 (0.45% NSR)
Polymetals Resources Endeavor mine financing update and mine restart expected end of 2024 (4% NSR)
Agnico Eagle Mines Wasamac updated development study anticipated in H1 2024 (1.5% NSR)
Agnico Eagle Mines Fosterville mine drilling at Harrier zone and further extensions of
Phoenix
decline towards royalty boundary
(2.5% NSR)
Taca Taca Environmental and Social Impact Assessment approval expected in 2024 (0.42% NSR)
Hudbay Minerals Copper World mine state environmental permits expected mid-2024 (0.315% NSR)
Sierra Madre Gold
& Silver's La Guitarra mine restart study anticipated in Q2 2024 (2% NSR)
Silver Storm Mining's La Parrilla mine plan technical study expected in Q4 2024 (2% NSR)
Conversion of Interest under Convertible Loan Agreement
Beedie Capital ("
Beedie
") will increase their equity position by electing to convert
C$1.5 million
of the accrued and unpaid interest
(the "
Interest
") under the existing convertible loan facility between Metalla and Beedie (the "
Convertible Loan Facility
") into
429,800 common shares of Metalla (the "
Share Conversion
"). As per the terms of the Convertible Loan Facility, any accrued and
unpaid interest is convertible into common shares of Metalla (the "
Shares
"), at Beedie's request. The Interest will be converted at
a price of
C$3.49
per Share, being the closing price of the Shares on the TSX Venture Exchange (the "
TSXV
") on
February 20,
2024
. The Share Conversion is subject to the acceptance of the TSXV and of the NYSE American ("
NYSE
"). Following the Share
Conversion, Beedie will own approximately 9.99% of the Company's issued and outstanding common shares. As per the terms of
the Convertible Loan Facility the principal amounts outstanding under the facility have a conversion price of
C$6.00
.
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 of the Ordre des Géologues du Québec. Mr. Beaudry is a
QP as defined in National Instrument 43-101 -
Standards of Disclosure for Mineral Projects
("
NI 43-101
").
ABOUT METALLA
Metalla was created to provide shareholders with leveraged precious and strategic 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 royalty companies.
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 TSX Venture Exchange 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.
Notes:
1
.
Please see IAMGOLD Corporation's
press release
dated
February 15, 2024
2
.
Please see G Mining Ventures Corp.'s
press release
dated
January 15, 2024
,
Agnico Eagle Mines Limited's
press release
dated
February 15, 2024
,
Polymetals Resources'
Mine Restart Study for the Endeavor Mine
dated
October 16, 2023
,
First
Quantum Minerals Ltd.'s Management's Discussion and Analysis for the year ended
December 31, 2023
, and filed under First
Quantum's SEDAR+ profile on
www.sedarplus.ca
, the Technical Report titled "Phase I Pre-Feasibility Study and Updated
Mineral Resources Estimates, Copper World Project,
Pima County, Arizona
, USA", with an effective date of
July 1, 2023
, and
filed under Hudbay Minerals Inc.'s SEDAR+ profile on
www.sedarplus.ca
on
September 8, 2023
,
Sierra Madre Gold
and
Silver Ltd's
Press Release dated
February 8
2024
,
Silver Storm Mining Ltd.'s
February 2024
corporate presentation
.
Information contained on any website or document referred to or hyperlinked in this press release shall not be deemed to be a
part of this press release.
Non-IFRS Financial Measures
Metalla has included certain performance measures in this press release that do not have any standardized meaning prescribed
by International Financial Reporting Standards (IFRS) including attributable gold equivalent ounces (GEOs). The Company
believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to
evaluate the Company's performance and ability to generate cash flow.
Attributable GEOs are a non-IFRS financial measure that is composed of gold ounces attributable to the Company, plus an
amount calculated by taking the expected revenue by the Company from payable silver ounces, copper pounds, lead pounds
and zinc pounds attributable to the Company, less material costs, divided by the price of gold. The Company presents
attributable GEOs as it believes that certain investors use this information to evaluate the Company's performance in comparison
to other streaming and royalty companies in the precious metals mining industry who present attributable ounces on a similar
basis
The presentation of these non-IFRS financial measures is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may
calculate these non-IFRS financial measures differently.
Technical and Third-Party Information
Metalla has limited, if any, access to the properties on which Metalla holds a royalty, stream or other interest. Metalla is
dependent on (i) the operators of the mines or properties and their qualified persons to provide technical or other information to
Metalla, or (ii) publicly available information to prepare disclosure pertaining to properties and operations on the mines or
properties on which Metalla holds a royalty, stream or other interest, and generally has limited or no ability to independently
verify such information. 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 operators may
relate to a larger property than the area covered by Metalla's royalty, stream or other interests. Metalla's royalty, stream or other
interests can cover less than 100% and sometimes only a portion of the publicly reported mineral reserves, resources and
production of a property.
Unless otherwise indicated, the technical and scientific disclosure contained or referenced in this press release,
including any
references to mineral resources or mineral reserves, was prepared in accordance with Canadian
NI 43-101
, which differs
significantly from the requirements of the U.S. Securities and
Exchange Commission (the
"
SEC
"
)
applicable to U.S. domestic
issuers. Accordingly, the scientific and technical
information contained or referenced in this press
release may not be
comparable to similar information made
public by U.S. companies subject to the reporting and
disclosure requirements of the
SEC.
"
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. Historical results or feasibility models presented herein are not guarantees
or expectations of
future performance.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements")
within the meaning of applicable securities legislation.
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 include, but are not limited to, the statements regarding the drill program at
Gosselin by IAMGOLD and the timing thereof; the potential for the Gosselin deposit to reach similar dimensions as the Côté
deposit; the commencement of production at Tocantinzinho and the timing thereof; the commencement of production at
Amalgamed Kirkland and the timing thereof; Endeavor's mine financing update and mine restart
and the timing thereof; the
results of Wasamac's updated development study
and the timing thereof; the drilling at Harrier zone at the
Fosterville
mine and
further extensions of
Phoenix
decline towards royalty boundary;
the final approval of the Environmental and Social Impact
Assessment for
Taca Taca
and the timing thereof; the receipt of the outstanding state environmental permits for Copper World
and the timing thereof; the release of a mine restart study for La Guitarra and the timing thereof; the release of a mine plan
technical study for La Parilla and the timing thereof;
the acceptance of the TSXV and of the NYSE to the Share Conversion; the
closing of the Share Conversion; the expectations generally of Metalla the property owners/operators and the authors of relevant
technical reports and studies with respect to the mineral projects in which Metalla has an interest, including without limitation,
estimates of mineral resources and mineral reserves and updates thereto, production, mine life, NPV, IRR, costs, drilling,
development, permitting, water sourcing, commodity mix and prices, and the timing thereof;
future opportunities and
acquisitions;
future exploration, financing, development, production and other anticipated developments on the properties in
which the
Company has or has agreed to acquire an interest;
future growth, increased share value, cash generation and returns;
and Metalla having a path to becoming a leading gold and silver royalty 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: that
the drill program at Gosselin may not happen at all or in the anticipated timeline; that the Gosselin deposit may not have the
same dimensions as the Côté deposit; production may not start at Tocantinzinho at all or in the anticipated timeline; production
may not start at Amalgamated Kirkland at all or in the anticipated timeline; Endeavor's mine financing update and mine restart
may not occur at all or in the anticipated timeline; the results of Wasamac's updated development study
may not be released at
all or in the anticipated timeline; drilling at the Harrier zone at the
Fosterville
may not happen; the
Phoenix
decline may not be
further extended towards royalty boundary; First Quantum may not obtain final approval of the Environmental and Social Impact
Assessment for
Taca Taca
at all or in the anticipated timeline; Hudbay may not receive the outstanding state environmental
permits for Copper World at all or in the anticipated timeline; the mine restart study for La Guitarra may not be released at all or
in the anticipated timeline; the mine plan technical study for La Parilla may not be released at all or in the anticipated timeline;
that the Company will not obtain approval of the TSXV and of the NYSE for the Share Conversion; that the Share Conversion will
not be completed at all or in the terms announced; 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 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 current 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.
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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 07:00e 26-FEB-24