Completes Acquisition of 5% Royalty on Equinox Gold's Mine (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.