(All dollar amounts are in
TSXV: MTA
NYSE American: MTA
FINANCIAL HIGHLIGHTS
During the three months ended
- increased the number of royalties and streams held to a total of 68 precious metal assets through the following notable transactions:
- subsequent to
March 31, 2021 , acquired an existing 2.5% NSR royalty onMinera Alamos Ltd.'s La Fortuna project ("La Fortuna"), fromArgonaut Gold Ltd. for aggregate consideration of$2.25 million in cash, of which$1.25 million was paid upon closing and the remaining$1.0 million is payable six months after closing. The 2.5% NSR, which is capped at$4.5 million , will be in addition to Metalla's uncapped 1.0% NSR royalty to increase the total royalty exposure to 3.5% on the La Fortuna project; - acquired an existing 0.5% NSR royalty on Barrick Gold Corp.'s ("Barrick")
Del Carmen project, which is part of the 9MozAu Alturas-Del Carmen project in the prolificEl Indio belt in the San Juan province ofArgentina , fromCoin Hodl Inc. for a total consideration ofC$1.6 million in cash;(1) - acquired an existing 0.75% GVR royalty on Eldorado Gold Corp.'s 2Moz Au Tocantinzinho project located in the Tapajos district in the
State of Para in northernBrazil , from Sailfish Royalty Corp. for a total consideration of$9.0 million in cash, of which$6.0 million was paid by Metalla on closing and the remaining$3.0 million was paid subsequent toMarch 31, 2021 ;(2) - acquired an existing 1.0%-2.0% NSR royalty on OZ Minerals 1.7Moz Au CentroGold project ("CentroGold") located in the
State of Maranhão in northernBrazil , from Jaguar Mining Inc. for total consideration of$7.0 million in cash and with additional contingent payments of up to$11.0 million comprised of shares and cash subject to the successful completion of certain milestones in respect of the CentroGold project;(3) and - acquired an existing 0.45% NSR royalty on Agnico Eagle Mines Ltd.'s ("Agnico") Amalgamated Kirkland 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.(4) - from inception to
March 31, 2021 , the Company had distributed 1,314,193 common shares under its original at-the-market program (the "2020 ATM Program") at an average price of$9.88 per share for gross proceeds of$13.0 million . As of today, the Company has distributed a total of 1,809,300 common shares under the 2020 ATM program for gross proceeds of$17.4 million . The Company intends to terminate the 2020 ATM Program and establish a new at-the-market program (the "2021 ATM Program") with a syndicate of agents. Under the 2021 ATM Program the Company is expecting to distribute up to$35.0 million (or the equivalent in Canadian dollars) in common shares of the Company. After establishing the 2021 ATM Program, the Company will have no continuing obligations under the 2020 ATM Program and the remaining$2.6 million of common shares authorized for sale under the 2020 ATM Program will not be issued; - received or accrued payments on 731 (
February 29, 2020 – 698) attributable gold equivalent ounces at an average realized price of$1,751 (February 29, 2020 -$1,603 ) and average cash cost of$12 (February 29, 2020 -$541 ) per attributable gold equivalent oz. (see non-IFRS Financial Measures); - generated operating cash margin of
$1,739 (February 29, 2020 -$1,061 ) per attributable gold equivalent ounce from the Wharf, Joaquin, and COSE royalties, theNew Luika Gold Mine ("NLGM") stream held bySilverback 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
$0.7 million (February 29, 2020 -$1.0 million ), net loss of$2.4 million (February 29, 2020 -$1.6 million ), and adjusted EBITDA of negative$0.5 million (February 29, 2020 - negative$0.1 million ) (see non-IFRS Financial Measures); - recognized payments due (not included in revenue) from the Higginsville derivative royalty asset of
$0.5 million (February 29, 2020 - $Nil) (see non-IFRS Financial Measures); and - converted
C$5.0 million outstanding on theBeedie Capital amended loan facility (the "Beedie Loan Facility") atC$9.90 per share for a total of 505,050 common shares and completed a draw down for an additionalC$5.0 million from the Beedie Loan Facility with a conversion price ofC$14.30 per share, representing a 20% premium above the 30-day volume-weighted average price of the Company's common shares on the date of the draw down in accordance with the terms of the Beedie Loan Facility. The Company obtained TSXV approval for the foregoingC$5.0 million draw down. As at the date of this News Release, the Company has a total ofC$5.0 million outstanding under the Beedie Loan Facility bearing interest at a rate of 8% per annum with a remainingC$15.0 million available on standby under the Beedie Loan Facility.
ASSET UPDATES
Wharf Royalty
On
Metalla holds a 1.0% GVR royalty on the Wharf mine.
Higginsville Royalty
On
Metalla holds a 27.5% PPR royalty interest on the difference between the London PM fix gold price and
New Luika Silver Stream
On
Metalla holds a 15% interest in
Endeavor
On
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
On
Metalla holds a 2.0% NSR on
On
Metalla holds a 0.5% NSR royalty on the Del Carmen project which is the Argentine portion of the Alturas-Del Carmen project in the prolific
Wasamac
On
Metalla holds a 1.5% NSR on the Wasamac project subject to a buy back of 0.5% for
On
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.
CentroGold
On
Metalla holds a 1.0-2.0% NSR royalty on the CentroGold project.
On
Metalla holds a 2.0% NSR royalty on the
Upon commencement of the 2021 drill program, Contact Gold Corp. ("Contact") announced several drill highlights from drilling at the
Metalla holds a 2.0% NSR Royalty on
Camflo
On
Metalla holds a 1.0% NSR Royalty on Camflo.
Red Hill
On
Metalla holds a 1.5% GOR royalty on the Red Hill project.
Aureus East
On
Metalla holds a 1.0% NSR royalty on the Aureus East project.
Fortuity 89
On
Metalla holds a 2.0% NSR royalty on the Fortuity 89 project.
Tower Stock
In a press release dated
Metalla holds a 2.0% NSR Royalty on the Tower Stock project.
Mirado
On
Metalla holds a 1.0% NSR Royalty capped at
Goodfish-Kirana
On
Metalla holds a 1.0% NSR royalty on the Goodfish-Kirana project.
QUALIFIED PERSON
The technical information contained in this news release has been reviewed and approved by
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
(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.
Notes: | |
(1) | For details on the estimation of mineral resources and reserves, including the key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves, Canadian investors should refer to the NI 43-101 Technical Reports for |
(2) | For details on the estimation of mineral resources and reserves, including the key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves, Canadian investors should refer to the NI 43-101 Technical Reports for Tocantinzinho filed on www.sedar.com and the Eldorado Gold Annual Information Form Dated |
(3) | For details on the estimation of mineral resources and reserves, including the key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves, Canadian investors should refer to the ASX JORC Code Technical Reports for CentroGold and on file at www.asx.com.au and the Oz Minerals 2020 Annual Report. |
(4) | For details on the estimation of mineral resources and reserves, including the key assumptions, parameters and methods used to estimate the Mineral Resources and Mineral Reserves, Canadian investors should refer to the NI 43-101 Technical Reports for Amalgamated Kirkland on www.sedar.com. |
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 three months ended
Technical and Third-Party Information
Metalla has limited, if any, access to the properties on which Metalla holds a royalty, stream or other interest. Metalla is dependent on (i) the operators of the mines or properties and their qualified persons to provide technical or other information to Metalla, or (ii) publicly available information to prepare disclosure pertaining to properties and operations on the mines or properties on which Metalla holds a royalty, stream or other interest, and generally has limited or no ability to independently verify such information. 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 operators may relate to a larger property than the area covered by Metalla's royalty, stream or other interests. Metalla's royalty, stream or other interests can cover less than 100% and sometimes only a portion of the publicly reported mineral reserves, resources and production of a property.
Unless otherwise indicated, the technical and scientific disclosure contained or referenced in this press release, including any references to mineral resources or mineral reserves, was prepared in accordance with Canadian National Instrument 43-101 ("NI 43-101"), which differs significantly from the requirements of the
"Inferred mineral resources" have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Historical results or feasibility models presented herein are not guarantees or expectations of future performance.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking information" and "forward-looking statements" (collectively, "forward looking statements") within the meaning of applicable 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 except as required by applicable law.
All statements included herein that address events or developments that we expect to occur in the future are forward-looking statements. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects", "does not expect", "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, the advancement of the properties on which Metalla holds a royalty or streaming interest; the future growth in Metalla's net asset value; the successful completion of certain milestones in respect to the CentroGold project; the satisfaction of future payment obligations by Metalla; the establishment of the New ATM Program and any sales of common shares thereunder; the future availability of funds pursuant to the Beedie convertible loan facility; the future conversion of funds drawn down by Metalla under the Beedie convertible loan facility; the completion by property owners of announced drilling programs and other planned activities in relation to properties on which the Company holds a royalty or streaming interest; future disclosure by property owners and the expected timing thereof; the completion by property owners of announced capital expenditure programs; the mineral reserve estimates relating to the properties on which Metalla holds a royalty or streaming interest; the estimated production at Higginsville and Beta Hunt; the estimated silver and gold production at COSE and Joaquin; the forecasted JORC resource on New Luika; the release of additional assays at Del Carmen in Q2 2021; the completion of an updated feasibility study at Wasamac and the expected timing thereof; the lifting of the injunction at the CentroGold property; the potential inclusion of the Camflo property in the
Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. 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: changes in commodity prices; lack of control over mining operations; exchange rates; delays in or failure to receive payments; delays in construction; delays in the sale of the mines; third party reporting; the world-wide economic and social impact of COVID-19 is managed and the duration and extent of the coronavirus pandemic is minimized or not long-term; disruptions related to the COVID-19 pandemic or other health and safety issues, or the responses of governments, communities, partner operators, the Company and others to such pandemic or other issues; and the other risks and uncertainties disclosed under the heading "Risk Factors" in the Company's most recent Annual Information Form, annual report on Form 40-F and other documents filed with or submitted to the Canadian securities regulatory authorities on the SEDAR website at www.sedar.com and the
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.
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