(All dollar amounts are in United States dollars unless otherwise
indicated)
TSXV: MTA
OTCQX: MTAFF
Frankfurt: X9CP
VANCOUVER, Feb. 4, 2019 /CNW/ - Metalla Royalty &
Streaming Ltd. ("Metalla" or the "Company") (TSXV: MTA) (OTCQX: MTAFF) (FRANKFURT: X9CP) is pleased to
announce that the Company has entered into a purchase and sale agreement (the "Royalty Purchase Agreement") to acquire
from a third party (the "Seller") a 1.0% NSR royalty on Atlantic Gold Corporation's ("Atlantic Gold") (TSXV:
AGB) Fifteen Mile Stream project (the "Royalty") for $4,000,000 (the "Royalty
Transaction"). The purchase price will be satisfied by an upfront payment of $2,200,000 in cash
and 2,619,000 common shares of the Company (the "Consideration Shares"). The Royalty is in connection with two claims
formally held by the Seller which covers the Egerton-Maclean, Hudson, 149 East Zone, and the majority of the Plenty deposit which
collectively comprise the Fifteen Mile Stream project ("FMS Project") located in Nova
Scotia, Canada. The Royalty covers all products mined or otherwise recovered from the Project.
Brett Heath, President, and CEO of Metalla commented, "Metalla is pleased to add another
high-quality royalty on a growing deposit in Eastern Canada with emerging mid-tier operator
Atlantic Gold. Fifteen Mile Stream represents the next leg in the growth at the Moose River
Consolidated Gold Mine which has undergone extensive drilling aimed at expanding the resource." Mr. Heath continued, "Atlantic
Gold has quickly established itself as one of Canada's premier operators through the successful
commissioning of Moose River on time and within budget. This transaction is consistent with our long-stated strategy of acquiring
existing royalties on quality assets with strong operators."
FIFTEEN MILE STREAM
Fifteen Mile Stream is a gold project located 57km northeast of Atlantic Gold's central milling
facility at Touquoy and is readily accessible by highway. The project lies along the same geological trend as other related
deposits – Touquoy, Beaver Dam and Cochrane Hill – and all are
hosted within the same critical stratigraphy and structure, over a strike length of 80 km. The FMS Project is 100% owned by
Atlantic Gold and is being developed as part of their multi-phase mine plan that was outlined in a pre-feasibility report
disclosed on January 24, 2018 (see technical report titled "Moose River Consolidated Project, Nova
Scotia, Canada NI 43-101 Technical Report on Moose River Consolidated Phase 1 and Phase 2 Expansion" dated January 24, 2018 and filed on Atlantic Gold's SEDAR profile, referred to herein as the "Technical
Report"). The plan stipulates that following the commissioning of the Touquoy mine and mill, the FMS Project is to be put
into production in 2021 for a total cost of C$123 million. The FMS Project will produce a
concentrate that will be trucked and processed at the central milling facility at Touquoy. After the Technical Report was filed,
Atlantic Gold declared commercial production at Touquoy effective on March 1, 2018 as a result of a
successful ramp-up of mine and milling facilities at Touquoy on time and within budget.
According to Atlantic Gold, the FMS Project is expected to produce approximately 80,000 ounces of gold in 2021 in its first
year of production. Highlights of the life of mine plan at the FMS Project are for a 5-year mine life which will recover a total
of 391,000 ounces of gold at a cash cost of C$561/Oz and generate a 60.9% pre-tax IRR (see the link to
Atlantic Golds' press release dated January 29th, 2018) 1.
The Technical Report discloses the following mineral reserve and resource estimate on the FMS Project :
Reserves
|
Tonnes
|
Au grade
|
Gold
|
|
(kt)
|
(g/t)
|
(koz)
|
Proven
|
2,890
|
1.25
|
116
|
Probable
|
7,910
|
1.24
|
316
|
Proven & Probable
|
10,800
|
1.24
|
432
|
Resources
|
Tonnes
|
Au grade
|
Gold
|
|
(kt)
|
(g/t)
|
(koz)
|
Measured
|
2,710
|
1.33
|
116
|
Indicated
|
7,880
|
1.33
|
336
|
Measured & Indicated
|
10,590
|
1.33
|
452
|
Inferred
|
6,640
|
1.12
|
240
|
Mineral Resources have an effective date of July 20, 2017, and Mineral
Reserves have an
effective date of January 24, 2018. Atlantic Gold discloses Mineral Resources that are
reported inclusive of those Mineral Resources that have been converted to Mineral Reserves.
Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability
|
Since Atlantic Gold completed the resource and reserve estimate, they have drilled an additional 290 holes spanning over
35,000 meters at the FMS Project which will be included in an updated resource estimate expected to be released in the first half
of 2019.
ROYALTY PURCHASE AGREEMENT
Pursuant to the Royalty Purchase Agreement, Metalla and the Seller will enter into an assignment and assumption agreement
under which the Royalty will be transferred from the Seller to Metalla. Metalla expects to close the purchase of the Royalty on
or about February 12, 2019 and closing of the Transaction is subject to customary closing
conditions, including receiving TSX Venture Exchange approval. The Seller also agreed to transfer restrictions by providing the
Company with a right to place the Consideration Shares in the event the Seller wishes to sell 1.0% or more of the Consideration
Shares issuable to them.
The Consideration Shares issued to the Seller will be subject to a statutory four-month hold period from the date of their
issuance. The agreement was negotiated at arm's length between Metalla and the Seller. No brokerage or finder's fees were paid in
association with the acquisition of the Royalty.
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 the Ordre des Géologues du Québec and a consultant to Metalla. Mr. Beaudry is a Qualified
Person 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.
Technical and Third-Party Information
Note 1 – The disclosure herein and relating to the Fifteen Mile Stream Property is based on information prepared and
disclosed by Atlantic Gold Corporation and can be found in a news release filed on SEDAR by Atlantic Gold on March 15, 2018 and a technical report titled " Moose River Consolidated Project, Nova Scotia, Canada NI
43-101 Technical Report on Moose River Consolidated Phase 1 and Phase 2 Expansion" dated January 24,
2018 filed on SEDAR. The information and data are available in the public domain as at the date hereof, and none of
this information has been independently verified by the Company or is supported by a technical report prepared in accordance with
National Instrument 43-101 Standards of Disclosure for Mineral Projects. While the Company will request additional
information from Atlantic Gold once the Royalty Transaction is completed, it has not received access to the necessary data from
Atlantic Gold and is not able to obtain the necessary information from the public domain to prepare a technical report and
Atlantic Gold has not indicated the mineral resource and/or mineral reserve category, if any, on which the information above is
based. Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. The Fifteen Mile
Stream production contained herein may be based on mineral resource estimates that include inferred mineral resources, which are
considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized
as mineral reserves. There is also no certainty that inferred mineral resources, if used by Atlantic Gold in preparing the
production forecast, will be converted to the measured and indicated resource categories, or into mineral reserves, once economic
considerations are applied. Readers are cautioned that inferred resources have a great amount of uncertainty as to their
existence and as to whether they can be mined economically. As a result, the Company cautions readers that there is no
certainty that the projected gold production will be realized. Specifically, as a royalty holder, the Company has limited, if
any, access to the Fifteen Mile Stream Property. This news release also contains future-oriented financial information and
financial outlook information (collectively, "FOFI") about the projected gold production from the Company's royalty on the
Fifteen Mile Stream Property which is subject to the same assumptions, risk factors, limitations and qualifications as set forth
in the below paragraphs. FOFI contained in this news release was made as of the date of this news release and was provided for
the purpose of providing further information about Metalla's anticipated future business operations. Metalla disclaims any
intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information,
future events or otherwise unless required pursuant to applicable law. FOFI contained in this news release should not be used for
purposes other than for which it is disclosed herein. Such future-oriented production information is provided for the purpose of
providing information about management's current expectations and plans relating to the future. Readers are cautioned that such
outlook or information should not be used for purposes other than for which it is disclosed in this news release.
The Company is dependent on, (i) Atlantic Gold and their qualified persons to provide information to the Company, or (ii)
on publicly available information to prepare disclosure pertaining to the Fifteen Mile Stream Property and generally has limited
or no ability to independently verify such information. Although the Company 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. The disclosure
in this press release relating to the Fifteen Mile Stream Property is based on information publicly disclosed by the owner or
operator of this property and information/data available in the public domain as at the date hereof, and none of this information
has been independently verified by Metalla. Specifically, as a royalty holder, Metalla has and will have limited, if any, access
to the property subject to the Royalty. 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 the
operator may relate to a larger property than the area covered by Metalla's royalty interest. Metalla's royalty interests often
cover less than 100% and sometimes only a portion of the publicly reported mineral reserves, mineral resources and production of
a property.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable
Canadian and U.S. securities legislation. The forward-looking statements herein are made as of the date of this press release
only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions,
future events or results or otherwise, except as required by applicable law.
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 include, but are not limited to, statements with respect to the transactions contemplated under the
Royalty Purchase Agreement, anticipated cash flows and production upon completion of the Royalty Transaction, the completion of
the Royalty Transaction, and proposed future transactions Metalla may undertake and their expected timing. 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
requirement for regulatory approvals and third party consents, the impact of general business and economic conditions, the
absence of control over the mining operations from which Metalla will purchase gold and receive royalties, including risks
related to international operations, government relations and environmental regulation, the inherent risks involved in the
exploration and development of mineral properties; the uncertainties involved in interpreting exploration data; the potential for
delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the possibility that
future exploration, development or mining results will not be consistent with Metalla's expectations; accidents, equipment
breakdowns, title matters, labor disputes or other unanticipated difficulties or interruptions in operations; fluctuating metal
prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future;
the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price
fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions; liability,
competition, loss of key employees and other related risks and uncertainties. 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. Some
of the disclosure in this press release is based on information publicly disclosed by the owners or operators of these properties
and information/data available in the public domain as at the date hereof, and none of this information has been independently
verified by Metalla.
Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking
statements made in this press release are qualified by these cautionary statements.
SOURCE Metalla Royalty and Streaming Ltd.
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