By Robb M. Stewart


OTTAWA--Metalla Royalty & Streaming Ltd. has struck a deal to pick up royalties on Barrick Gold Corp.'s big gold project in South America for $7.5 million in cash and shares.

The precious metals royalty company said Monday the agreement with a third party would see it buy an existing 2.5% to 3.75% gross value return royalty on gold and silver, and a 0.25% to 3.0% net smelter return royalty on copper and other non-precious minerals, extracted from the majority of the Lama project, owned by Barrick.

Brett Heath, president and chief executive of Metalla, said the purchase will give the company exposure to a significant geological gold-bearing trend with a substantial amount of near-term growth and exploration upside.

"We are excited by the $75 million being spent by Barrick on defining resources on the Lama extensions, most of which is covered by the royalty area," Mr. Heath said, adding that Barrick has initiated a study to evaluate the development of a standalone operation on the Argentina side of Lama that is expected to be completed in the second quarter of next year and provide a development decision for the Lama project in 2024.

Lama is the Argentine portion of the 21-million-troy ounce Pascua-Lama project straddling the border of Chile and Argentina.

Metalla said it has agreed to pay $2.5 million in cash and issuance $2.5 million in shares on the closing of the transaction. The remaining $2.5 million in cash or shares of Metalla will be paid within 90 days of the earlier of a 2 million ounce gold mineral reserve estimate on the royalty area or 36 months after the closing date of the transaction, it said.


Write to Robb M. Stewart at robb.stewart@wsj.com


(END) Dow Jones Newswires

12-12-22 0746ET