Metalla Marks Major Step in Growth by Acquiring 18 Royalties from Alamos Gold
ANCOUVER, April 1, 2019 /CNW/ - Metalla Royalty & Streaming Ltd. ("Metalla" or the "Company") (TSXV:MTA.V - News) (OTCQX:MTAFF - News) (FRANKFURT:X9CP.F - News) is pleased to announce that the Company has entered into a purchase and sale agreement (the "Royalty Purchase Agreement") to acquire a portfolio of 18 royalties (the "Royalty Portfolio") from Alamos Gold Inc. (NYSE:AGI - News)(TSX:AGI.TO - News) and its affiliates (collectively "Alamos") for total consideration of US$8.6 million, (CAD$11.5 million) payable in common shares of the Company ("Common Shares"). Certain royalties in the Royalty Portfolio are subject to rights of first refusal, consents, and future options at agreed to prices.
- Increased Size and Scale: Acquisition of sixteen (16) royalties and two (2) options to acquire additional royalties expanding Metalla's portfolio up to forty-three (43) royalties and streams upon closings;
- Advanced-Stage Development Portfolio to Add Significant Future Cash Flow: Addition of five advanced development royalties enhancing Metalla's pipeline and future cash flow profile;
- Strong Counterparties: Royalty counterparties include Agnico Eagle Mines Limited ("Agnico"), SSR Mining Inc. ("SSR"), Kirkland Lake Gold Ltd, Waterton Global Resource Management, Buenaventura, Mineral Alamos Inc. ("Minera Alamos"), Monarch Gold Corporation ("Monarch"), and others;
- New Strategic Shareholder: Alamos is one of the premier intermediate gold producers in North America with a market cap of CAD$2.7 billion;
- Long-Term Optionality: Twelve (12) royalties on exploration-stage properties;
- Safe Jurisdictions: Eight (8) royalties in Canada, six (6) royalties in Peru, three (3) royalties in Mexico and one (1) in Chile.
ROYALTY PORTFOLIO: KEY ASSETS
- El Realito NSR Royalty (Sonora, Mexico) – a 2% NSR royalty on the El Realito property owned and operated by Agnico located adjacent to its operating La India mine;
- Wasamac NSR Royalty (Rouyn-Noranda, Quebec) – a 1.5% NSR royalty on the Wasamac Mine currently under development by Monarch Gold located 15km west of Rouyn-Noranda in Quebec;
- La Fortuna NSR Royalty (Durango, Mexico) – an option to purchase a 1% NSR royalty on the La Fortuna Mine currently under development by Minera Alamos located in Durango State, Mexico;
- Beaufor Mine NSR Royalty (Val d'Or, Quebec) - a 1% NSR royalty on the producing Beaufor Mine operated by Monarch Gold, located 20km northeast of Val d'Or, Quebec;
- San Luis NSR Royalty (Central, Peru) – a 1% NSR royalty on the San Luis property owned by SSR and is located in the Ancash Department, central Peru.
"This transaction marks a major step in growth for Metalla," commented Metalla's President & CEO Brett Heath. "Today's accretive transaction with Alamos significantly enhances Metalla's existing portfolio and will drive production growth, cash flow, NAV, and increase our precious metals optionality. We want to welcome Alamos as a strategic shareholder and believe their endorsement continues to prove our strategy of being the go-to royalty company for third-party holders. With 43 royalties now in our portfolio, we believe Metalla is well positioned for an exciting future."