Metalla Reports Audited Financial Results for
Metalla Reports Audited Financial Results for
Seven Months Ended December 31, 2020 and
Provides Asset Updates
(All dollar amounts are in
United States
dollars unless otherwise indicated)
TSXV: MTA
NYSE American: MTA
VANCOUVER, BC
,
March 26, 2021
/CNW/ -
Metalla Royalty & Streaming Ltd.
("
Metalla
" or the
"
Company
") (TSXV: MTA) (NYSE American: MTA) announces its operating and financial results for
the seven months ended
December 31, 2020
. Metalla has also filed with the U.S. Securities and
Exchange Commission (the "
SEC
") its SEC Annual Report on Form 40-F for the seven months
ended
December 31, 2020
. The Form 40-F includes the Company's Annual Information Form,
audited financial statements and management's discussion & analysis for the seven months ended
December 31, 2020
. For complete details of the consolidated financial statements and
accompanying management's discussion and analysis for the seven months ended
December 31,
2020
, please see the Company's filings on SEDAR (
www.sedar.com
) or on EDGAR (
www.sec.gov
).
Shareholders are encouraged to visit the Company's website at
http://www.metallaroyalty.com/
.
Metalla shareholders may receive a hard copy of the Company's complete audited financial
statements for the seven months ended
December 31, 2020
, free of charge, upon request. For
further information please visit the Company website at
https://www.metallaroyalty.com/financial-reports/
.
Brett Heath
, President, and CEO of Metalla, commented, "2020 represented another very
successful year for Metalla shareholders. We completed a record of 7 transactions adding 18 high-
quality accretive royalties. We added two producing assets with the Wharf and Higginsville
royalties, two royalties that capture maximum optionality with Cortez and
Fosterville
, and more
than a dozen others that provide growth, exploration upside, diversification, and further optionality.
2021 is already off to a great start with a record of 4 transactions completed in the first quarter,
adding 5 development stage royalties with major counterparties capturing a significant amount of
what we expect to be future organic growth. This year, we are excited to grow our business with
the same disciplined and focused strategy that has made Metalla one of the top-performing royalty
companies since its inception. "
FINANCIAL HIGHLIGHTS
During the seven months ended
December 31, 2020
, and the subsequent period, the Company:
increased the number of royalties and streams held to a total of 68 precious metal assets
through the following notable transactions:
acquired a net 1.0% Gross Value Return ("
GVR
") royalty interest on the operating Wharf
mine ("
Wharf
") in
South Dakota
from third parties for total consideration of
$1.0 million
in
cash and 899,201 common shares. Wharf is operated by Coeur Mining, Inc. ("
Coeur
");
acquired a 2.5% GVR royalty on the northern and southern extensions of Kirkland Lake
Gold Ltd.'s ("
Kirkland Lake Gold
") operating
Fosterville
mine ("
Fosterville
") in
Victoria,
Australia
, from NuEnergy Gas Limited for total consideration of
A$2.0 million
in cash and
467,730 common shares;
acquired a 27.5% Price Participation Royalty ("
PPR
") on Karora Resources Inc.'s
("
Karora
") operating Higginsville Gold Operations ("
Higginsville
") in Higginsville,
Australia
,
from the Morgan Stanley Capital Group Inc. for total consideration of 828,331 common
shares. The royalty is a 27.5% price participation royalty interest on the difference between
the London PM fix gold price and
A$1,340
/oz on the first 2,500 ounces per quarter until a
cumulative total of 34,000 ounces of gold has been delivered to Metalla;
acquired a 1.0% Net Smelter Return ("
NSR
") royalty on Minera Alamos Inc.'s La Fortuna
project ("
La Fortuna
") from Alamos Gold Inc. ("
Alamos Gold
"). As part of the Company's
acquisition of a royalty portfolio from Alamos Gold announced in
April 2019
, the Company
acquired an option to acquire the La Fortuna royalty, upon completion of satisfactory due
diligence, for a deposit of
$0.4 million
in common shares of the Company. The option
allowed the Company to complete the acquisition for an additional
$0.6 million
in cash,
which was paid on
October 22, 2020
in full satisfaction of the acquisition price;
completed a purchase agreement to acquire 100% of the issued and outstanding shares of
Genesis Gold Corporation ("
Genesis
") and Geological Services Inc. ("
GSI
"), two privately
held Utah Corporations for total consideration of
$1.0 million
and 401,875 common shares.
Geologic and GSI hold a portfolio of eleven royalties in
Nevada
and
Utah
;
acquired an existing 0.45% NSR royalty on Agnico Eagle Mines Ltd.'s ("
Agnico
")
Amalgamated Kirkland property ("
AK Property
") in its
Kirkland Lake
project, and an
existing 0.45% NSR royalty on
Kirkland Lake Gold's
North Amalgamated Kirkland property
("
North AK Property
") at its Macassa mine, from private third parties for total
consideration of
C$0.7 million
in cash;
acquired an existing 0.5% NSR royalty on Barrick Gold Corp.'s
Del Carmen
project ("
Del
Carmen
"), which is part of the 9Moz Au Alturas-Del Carmen project in the prolific El Indio
belt in the
San Juan
province of
Argentina
, from Coin Hodl Inc. for a total consideration of
C$1.6 million
in cash;
acquired an existing 0.75% GVR royalty on Eldorado Gold Corp.'s 2Moz Au Tocantinzinho
project ("
Tocantinzinho
") located in the prolific Tapajos district in the State of Para in
northern
Brazil
, from Sailfish Royalty Corp. for a total consideration of
$9.0 million
in cash,
of which
$6.0 million
was paid upon closing and the remaining
$3.0 million
is payable 60
days after closing; and
acquired an existing 1%-2% NSR royalty on OZ Minerals 1.7Moz Au CentroGold (Gurupi)
project ("
CentroGold
") located in the State of Maranhão in northern
Brazil
, from Jaguar
Mining Inc. for total consideration of
$7.0 million
in cash and with additional potential
payments of up to
$11.0 million
in shares and cash subject to the completion of certain
milestones.
to
December 31, 2020
, the Company had distributed 282,700 common shares under the ATM
Program at an average price of
$10.58
per share for gross proceeds of
$3.0 million
. As at the
date of this MD&A, the Company had distributed a total of 1,301,593 common shares under the
ATM program for gross proceeds of
$12.9 million
;
was added to the VanEck Vectors Junior Gold Miners ETF (NYSE: GDXJ) (the "
GDXJ
"), U.S.
Global GO GOLD and Precious Metal Miners ETF (NYSE Arca: GOAU), and the ETFMG
Prime Junior Silver Miners ETF (NYSE Arca: SILJ);
received or accrued payments on 1,404 (
May 31, 2020
– 1,989) attributable gold equivalent
ounces at an average realized price of
$1,784
(
May 31, 2020
-
$1,589
) and average cash cost
of
$18
(
May 31, 2020
-
$607
) per attributable gold equivalent oz. (see non-IFRS Financial
Measures);
generated operating cash margin of
$1,766
(
May 31, 2020
-
$983
) per attributable gold
equivalent ounce from the Wharf, Joaquin, COSE, the New Luika Gold Mine ("
NLGM
") stream
held by Silverback Ltd. ("
Silverback
"), the Higginsville derivative royalty asset, and other royalty
interests (see non-IFRS Financial Measures);
recognized revenue from royalty and stream interests, including fixed royalty payments, of
$1.3
million
(
May 31, 2020
-
$2.8 million
), net loss of
$4.7 million
(
May 31, 2020
-
$4.4 million
), and
adjusted EBITDA of negative
$1.0 million
(
May 31, 2020
- negative
$1.5 million
) (see non-IFRS
Financial Measures);
completed a secondary public offering for Coeur for a total of 3,910,000 common shares of the
Company previously held, at a price of
$5.30
per common share for gross proceeds of
$20.7
million
(the "
Secondary Offering
"). The net proceeds of the Secondary Offering were paid
directly to Coeur; and
completed an amendment of the convertible loan facility with Beedie Capital ("
Beedie
") in
August 2020
whereby Beedie converted
C$6.0 million
of the
C$7.0 million
initial advance at
C$5.56
per share for a total of 1,079,136 shares. The Company drew down the remaining
C$5.0 million
from the original loan facility with a revised conversion price of
C$9.90
per share
and Beedie made an additional
C$20.0 million
available to the Company to fund future
acquisitions. In
October 2020
, Beedie converted the remaining
C$1.0 million
of the initial
advance at
C$5.56
per share for a total of 179,856 common shares. In
March 2021
, Beedie
converted the
C$5.0 million
outstanding at
C$9.90
per share for a total of 505,050 common
shares and the Company drew down an additional
C$5.0 million
from the amended loan facility
with a conversion price of
C$14.30
per share, in accordance with the terms of the amended
loan facility. Following the three conversions and the additional drawdowns the Company has a
total of
C$5.0 million
outstanding and
C$15.0 million
available on standby under the amended
loan facility as at the date of this press release.
ASSET UPDATES
Santa Gertrudis
On
February 11, 2021
, Agnico announced an updated mineral resource estimate for Santa Gertrudis
with an Indicated resource of 111 Koz gold and 816 Koz silver (5,778 Kt at 0.6 g/t gold and 4.39 g/t
silver) and inferred resource of 1,625 Koz gold and 7,715 Koz silver (27,671 Kt at 1.83 g/t gold and
8.67 g/t silver).
In the same quarter, in its
February 11, 2021
news release, Agnico released drill results at the
Amelia deposit in the Trinidad Trend that were not captured in the updated resource estimate.
Several holes intersected known structures as well as new structures, notable intercepts include 5.7
g/t gold and 10 g/t silver over 33 meters, 4.8 g/t gold and 3 g/t silver over 4.2 meters and 2.8 g/t
gold and 12 g/t silver over 12.4 metres. Drilling focused at Espiritu Santo in the Trinidad Trend
showed that mineralization remains open at depth with highlight intercepts of 3.9 g/t gold and 36 g/t
silver over 10.5 metres and 5.5 g/t gold and 16 g/t silver over 10.1 metres.
In the El Toro Trend, south of the
Trinidad
trend, drilling demonstrated higher grades below the
mineral resource and suggested the presence of a potential feeder zone at depth similar to Amelia.
Notable intercepts include 3.4 g/t gold and 1 g/t silver over 7.2 metres and 3.6 g/t gold and 2 g/t
silver over 18 metres.
Southwest of the Amelia Deposit, shallow high-grade intercepts at the Santa Teresa Zone have
refreshed the potential for the presence of larger structures controlling higher-grade mineralization to
the west. Significant surface intercepts at Santa Teresa include 2.1 g/t gold and 47 g/t silver over
4.5 metres, 4 g/t gold and 4 g/t silver over 5.1 metres and 3.9 g/t gold and 10 g/t silver over 7.5
metres.
In the
February 11, 2021
press release Agnico announced it expects to spend
$11.0 million
on
30,000 metres of drilling at Santa Gertrudis that will be focused on expanding the mineral resource,
testing extensions of high-grade structures such as the Amelia deposit, exploring new targets and
completing metallurgical test work. An updated mineral reserve and resource estimate and an
updated preliminary economic assessment are expected in 2021.
Metalla holds a 2.0% NSR on Santa Gertrudis subject to Agnico's right to buy back 1% for
$7.5
million
.
Wharf Royalty
On
February 17, 2021
, Coeur reported in a Form 8-K news release, that Wharf produced 93,056
ounces of gold at 0.84 g/t during 2020, meeting the production guidance range of 85 – 95 Koz that
was revised upward during the year. Notably, second half gold production increased 31% from the
first half of 2020. Activities during the year included general maintenance capital projects at Wharf
and exploration drilling at the
Richmond Hill
target. Coeur has guided 85 – 95 Koz gold for 2021
production and expects to complete an infill program spending
$5
-8 million focused on the southern
edge of the existing resources at Wharf, called Portland Ridge.
Coeur experienced a productive exploration program at Wharf in 2020 with a strong resource and
reserve estimate released
February 17, 2021
. The Company released an updated reserve estimate
of 720 Koz of gold, an additional 605 Koz of gold in the M&I mineral resource category and 67 Koz
of gold in the inferred mineral resource category at the operation.
Metalla holds a 1.0% GVR royalty on the Wharf mine.
Higginsville Royalty
On
January 19
and
March 19, 2021
, Karora announced in a news release the production of 99,249
ounces of gold from its Higginsville and Beta Hunt operations in
Western Australia
, exceeding the top
end of 2020 production guidance of 90-95 Koz. Karora has guided 2021 Higginsville and Beta Hunt
production to amount to 105-115Koz of gold with an increase of the exploration budget of
A$20
million
to be allocated across Higginsville, Beta Hunt, and Spargos.
On
Dec 16, 2020
Karora declared a Mineral Reserve estimate of 17,752 Kt at 1.5 g/t for 845 Koz
gold with a measured and indicated mineral resource estimate of 29,994 Kt at 1.5 g/t for 1,466 Koz
gold at the Higginsville operation.
Metalla holds a 27.5% PPR royalty interest on the difference between the London PM fix gold price
and
A$1,340
/oz on the first 2.5 Koz per quarter until a cumulative total of 34.0 Koz of gold at the
Higginsville operation have been delivered. As at
December 31, 2020
, 4.1 Koz have been delivered.
COSE & Joaquin Royalties
In its Management's Discussion & Analysis for the year ended
December 31, 2020
, Pan American
Silver Corp. ("
Pan American
") guided that silver production (including Manantial Espejo) is forecast
to be between 3.18 and 3.46 Moz in 2021, which is between 25% and 36% higher than the 2.55
Moz produced in 2020. Gold production in 2021 is forecast to be between 33.2 -35.3 Koz, which is
46% higher for gold than production in 2020 using the midpoint of guidance. The expected increase
reflects higher anticipated throughput, particularly from the higher grade COSE and Joaquin
operations, as the operating restrictions related to COVID-19 diminish during the year.
Metalla holds an NSR royalty of 1.5% and 2.0% on COSE and Joaquin mines, respectively.
New Luika Silver Stream
On
March 2, 2021
, Shanta Gold Limited ("
Shanta
") announced 2020 production met guidance for a
total of 82,979 oz of gold production and 92,323 oz of silver production. During the year, Shanta
completed upgrades to the processing plant to increase plant throughput, Shanta noted the plant
throughput for 2020 achieved an all-time company record of 712Kt. 2021 production guidance has
been set at approximately 80 Koz of gold. On
January 20, 2021
, Shanta reported ore reserves of
3,980 Kt at 2.98 g/t for 382 Koz gold and resources exclusive of Reserves of 6,379 Kt at 2.27 g/t
for 464 Koz gold. On
December 16, 2020
, Shanta announced a new discovery on New Luika called
Porcupine South, a JORC resource is expected on this new discovery later in 2021.
Metalla holds a 15% interest in Silverback Ltd. whose sole business is receipt and distribution of a
silver stream on New Luika at an ongoing cost of 10% of the spot silver price.
Endeavor Silver Stream
After decades of successful operation, the operator of the Endeavor Mine, located in Cobar,
Australia
, CBH Resources Limited ("
CBH
") suspended mining operations at the Endeavor Mine in
December 2019
and placed it into care and maintenance. In
October 2020
, CBH announced they
have entered into a farm-in agreement with Sandfire Resources Ltd. ("
Sandfire
") whereby Sandfire
may earn-in up to a 100% interest in the Endeavor mine and surrounding exploration tenements. In a
press release dated
October 27, 2020
, Sandfire disclosed that it will bring its technical exploration
and geological expertise to the project, with a focus on exploration within the surrounding tenement
package aimed at making new discoveries which could leverage off the existing infrastructure. On
February 25, 2021
, Sandfire reported diamond drilling was conducted during Q4 2020 to provide
DHEM survey platforms targeting potential extensions to the Endeavor mine's mineralization.
Metalla has the right to buy 100% of the silver production up to 20 million ounces (12.6 million
ounces remaining under the contract for delivery) from the Endeavor Mine for an operating cost
contribution of
$1.00
per ounce of payable silver, indexed annually for inflation, plus a further
increment of 50% of the silver price in excess of
$7.00
per oz.
Wasamac
On
January 21, 2021
, Yamana Gold Inc. ("
Yamana
") completed the acquisition of the Wasamac
property and Camflo property and began advancing its Wasamac development plans. On
February
11, 2021
, Yamana further provided plans on the Wasamac project outlining the potential for
significant future exploration success and mineral resource conversion with the deposit remaining
open along strike and open at depth. Yamana will be commencing an exploration and infill drilling
campaign and other studies to refine and expand upon the potential of Wasamac. Yamana has
guided towards a production start date in 2025.
Metalla holds a 1.5% NSR on the Wasamac project subject to a buy back of 0.5% for
C$7.5 million
.
Beaufor Mine
On
January 28, 2021
, Monarch Mining Corporation ("
Monarch
") announced an updated resource
estimate for the Beaufor mine. As of
December 31, 2020
, the Beaufor mine contained a M&I mineral
resource estimate of 431Kt at 6.68 g/t for 92.7 Koz of gold and an inferred resource estimate of 134
Kt at 6.96 g/t for 30.1 Koz of gold. Monarch Mining will continue its exploration plan to grow the
mineral resource with the ultimate plan to restart gold production within 8 to 14 months.
Metalla holds a 1.0% NSR on the Beaufor mine once Monarch has produced 100 Koz of gold. To
date, approximately 27.3 Koz of gold have been produced from the property.
El Realito
Agnico in its
February 11, 2021
, press release provided production guidance for the La India mine
where the El Realito deposit is included in the reserve estimate. Production guidance for 2021, 2022
and 2023 is 77 Koz, 75Koz and 42.5Koz, respectively. Agnico also stated its intentions to complete
a 20,000 metre drill program budgeted at
$4 million
focused on the extensions of the El Realito
deposit and extensions to the Chipriona deposit. On
October 28, 2020
, Agnico reported drilling was
focused on the oxide and sulphide portions at El Realito. Drilling in the shallow oxides continued to
confirm mineral resources and improved geological understanding of the deposit and its feeder
structures, while deeper drilling expanded the sulphide mineralization at depth.
Metalla holds a 2.0% NSR royalty on the El Realito deposit which is subject to a 1.0% buyback right
for
$4 million
.
Garrison
On
January 14, 2021
, Moneta Porcupine Inc. ("
Moneta
") completed the acquisition of the Garrison
project from O3 Mining, amalgamating the projects that are within two kilometers under one
company that now boasts a global resource of 8.4 Moz of gold. Moneta's acquisition came weeks
after O3 Mining released an updated preliminary economic assessment study of the Garrison project
on
December 14, 2020
. The study outlined a 12-year mine plan producing 121 Koz of gold per year
for the first 8 years with a 33% internal rate of return at
$1,450
/oz gold. In conjunction with the
acquisition, Moneta completed an oversubscribed
C$22.6 million
financing which will assist in funding
its
70,000m
program slated for 2021.
Metalla holds a 2% NSR Royalty on the Garrison project.
Fosterville
On
March 18, 2021
,
Kirkland Lake Gold
announced drilling is expected to commence in April on the
southern extension of the
Fosterville
mining lease, with up to four diamond drill rigs in the area
operating for 24 hours a day. Exploration will be focused on discovery of mineralized systems
extending from the Harrier and Daley's hill ore bodies and previously unidentified gold mineralization
in the southern portion of the lease. In addition,
Kirkland Lake Gold
plans to conduct a regional
Airborne Gravity Survey to identify corridors host to prospective mineralization in March/early April in
a large area south of the mining lease. On
February 25, 2021
,
Kirkland Lake Gold
announced fiscal
year 2020 exploration totalled a COVID-19 reduced budget of
$57.8 million
for a total of 117,848
metres of surface and underground drilling at
Fosterville
. It reported that underground drilling during
the fourth quarter continued to target the Harrier and Cygnet zones, as well at the Lower Phoenix
System. 2021 expenditures at
Fosterville
are expected to be in the range of
$85
-
$95 million
where
drilling will continue to focus on Mineral Reserve and Mineral Resource replacement and identifying
new high-grade zones, including Harrier, Lower Phoenix and Cygnet.
Metalla holds a 2.5% GVR royalty on the northern and southern sections of the
Fosterville
mining
lease, which is not currently in production. Metalla had decided to reclassify this royalty as a Gross
Value Return Royalty after confirming this royalty allows for no deductions.
Big Springs
On
January 18, 2021
and
January 25, 2021
, Anova Metals Limited ("
Anova
") announced high grade
drill results at the Big Springs project confirming and extending mineral resources. Significant
intercepts include 3.96 g/t over 10.85 metres, 15.83 g/t over 5.49 metres, and 3.98 g/t gold over
4.54 metres. 2021 exploration will continue to aggressively focus on extensions to high grade
mineralization at Big Springs.
Metalla holds a 2.0% NSR royalty on the Big Springs project.
Fifteen
Mile Stream
St. Barbara Mining Limited ("
St. Barbara
") announced in its
February 17, 2021
, half year report that
an updated Environmental Impact Statement for the Fifteen Mile Stream project was submitted to
the local authorities and has guided to a 2024 production start date.
Metalla holds a 1.0% NSR Royalty on the Fifteen Mile Stream project with a further 3.0% NSR
royalty covering the Plenty deposit (Plenty is subject to a 2% buy back for
C$1.5 million
).
Hoyle Pond Extension
As of the end of 2020, approximately 9.5 Koz of gold were produced from mineral claims subject to
Metalla's royalty and total reserves of 269 Kt of 11.4 g/t for 98.3 Koz of gold and measured,
indicated, and inferred resources of 82.4 Kt at 7.7 g/t for 20.2 Koz of gold. Drilling is expected to
continue in 2021 with a budget of 5,000-10,000 metres on the extension.
Metalla owns a 2.0% NSR royalty payable by Newmont Corporation on the Hoyle Pond Extension,
located on claims that are beneath the Kidd metallurgical complex and immediately adjacent to the
east and northeast of the Hoyle Pond mine complex. There is a 500,000 oz. gold exemption on the
leased mining rights.
Green Springs
Upon completion of the 2020 drill program, Contact Gold Corp. ("
Contact
") announced several drill
highlights from drilling at the Green Springs project. In a news release dated
November 16, 2020
,
drill highlights from the Echo zone included 2.18 g/t gold over 28.9 metres. In a news release dated
November 23, 2020
, drilling at the Zulu zone intersected 1.14 g/t gold over 25.9 metres. In a news
release dated
January 12, 2021
, drilling at the Echo zone intercepted 2.24 g/t gold over 35 metres
and 1.49 g/t gold over 17.68 metres. In a news release dated
January 26, 2021
, drilling at the Bravo
zone returned 10.7 g/t over 4.57 metres and 1.23 g/t gold over 17 metres. Further, in a news
release dated
February 9, 2021
, drilling intersected 1.45 g/t over 39 metres at the Alpha Zone.
Lastly, Contact announced on
February 23, 2021
drilling at the Charlie zone returned 2.34 g/t gold
over 33 metres. On
March 9, 2021
, Contact announced the start of the 2021 drill program at Green
Springs.
Metalla holds a 2.0% NSR Royalty on Green Springs.
Redhill
On
February 18, 2021
, NuLegacy Gold Corporation ("
NuLegacy
") announced they intersected
significant gold mineralization at the Rift Anticline prospect. Significant intercepts included 1.6 g/t
gold over 16.8 metres and 1.1 g/t gold over 13.9 metres. NuLegacy will begin drilling the remaining
12 or 13 holes at the Rift Anticline in
March 2021
.
Metalla holds a 1.5% GOR royalty on the Red Hill project.
Aureus East
In a news release dated March 1, 2021, Aurelius Minerals Inc. ("
Aurelius
") reported assay results
from underground drilling at Aureus East of 11.7 g/t gold over 10.5 metres, 5.8 g/t gold over
16.5 metres and 14 g/t gold over 9.6 metres. On
January 14, 2021
, Aurelius reported high grade
results of 109.5 g/t gold over 1.62 metres and 8.08 g/t gold over 16.5 metres. Over the reminder of
2021, Aurelius will continue to drill its 10,000 metres drill program at the Aureus East project.
Metalla holds a 1.0% NSR royalty on the Aureus East project.
Fortuity 89
On
March 9, 2021
, Discovery Harbour Resources Corp. announced it had entered an option and
earn-in agreement with Newcrest Mining Ltd. ("
Newcrest
") on the Fortuity 89 property which is
located four kilometres west of the Caldera property near
Tonopah, Nevada
. The option and earn-in
agreement provide for Newcrest to earn up to 75% of the project for total expenditures of
$31.5
million
and the completion of a positive preliminary economic assessment. Fortuity 89 is an early
stage epithermal gold target characterized by a strongly altered outcrop surrounded by a large
gravel plain.
Metalla holds a 1.0% NSR royalty on the Fortuity 89 project.
Edwards
On
December 17, 2020
, Alamos Gold acquired Trillium Mining Corp. ("
Trillium
") for
C$25 million
in
cash. Trillium held the Edwards mine and the surrounding land package, along strike from its Island
Gold deposit. The acquisition of the Edwards Gold Mine and the surrounding land will allow for
Alamos Gold to apply a systematic, district scale approach to exploration on the greenstone belt.
Alamos Gold has allocated a 25,000 metre drill program to the regional land package in 2021.
Metalla holds a 1.25% NSR Royalty on the Edwards mine.
OUTLOOK
Primary sources of cash flows from royalties and streams for 2021 are expected to be Wharf,
Higginsville, Joaquin, COSE, and NLGM. In 2021, the Company expects 2,200 to 3,200 attributable
gold equivalent ounces
(1)
. Similar to 2020, the Company expects gold equivalent ounces to be
weighted towards the second half of the year.
(1)
For the methodology used to calculated attributable gold equivalent ounces see the Non-IFRS Financial Measures section of the Company MD&A for the seven months
ended December 31, 2020.
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 and a director of Metalla. Mr. Beaudry is a QP
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.
Non-IFRS Measures
The items marked above are alternative performance measures and readers should refer to non-
international financial reporting standards ("IFRS") financial measures in the Company's
Management's Discussion and Analysis for the seven months ended
December 31, 2020
as filed
on SEDAR and as available on the Company's website for further details. Metalla has included
certain performance measures in this press release that do not have any standardized meaning
prescribed by IFRS including (a) average cash cost per attributable gold equivalent ounce, (b)
average realized price per attributable gold ounce, (c) operating cash margin per attributable gold
equivalent ounce, which is based on the two preceding measures, and (d) adjusted EBITDA. In the
precious metals mining industry, this is a common performance measure but does not have any