TSXV: MTA
OTCQX: MTAFF
Frankfurt: X9CP
VANCOUVER, Sept. 5, 2018 /CNW/ - Metalla Royalty
& Streaming Ltd. ("Metalla" or the "Company")
(TSXV: MTA) (OTCQX: MTAFF) (FRANKFURT: X9CP) is pleased to announce
that it has entered into a purchase and sale agreement (the
"Agreement") to acquire a 2% net smelter return royalty (the
"Royalty") on the Santa
Gertrudis gold property located north of Hermosillo in Sonora, Mexico ("Property") from GoGold
Resources Inc. ("GoGold") for US$12
million in cash.
The Agreement is subject to a Right of First Refusal
("ROFR") held by the owner of the Property, Agnico Eagle
Mines Limited ("Agnico"). Agnico has 45 days (the
"Offering Period") to exercise its ROFR. If Agnico fails to
respond or waives its ROFR during the Offering Period, then Agnico
will be deemed to have refused the offer.
GoGold, at its option, has the right to take US$6 million of the purchase price in Metalla
shares at a deemed price of CAD$0.78
per share. Such shares will be subject to a 4 month hold period
under applicable securities laws and the rules of the TSX Venture
Exchange. In addition to the ROFR, the completion of the
acquisition is subject to customary conditions including the
approval of the TSX Venture Exchange. Closing is expected to occur
by the second half of Q4 2018.
Mr. Brett Heath, President and
Chief Executive Officer of Metalla commented, "This acquisition
enhances Metalla's strong development pipeline and adds a second
royalty with Agnico as its counterparty, one of the premier gold
mining companies in the world."
SANTA GERTRUDIS GOLD
PROPERTY
Santa Gertrudis is the most
recent acquisition by Agnico which closed in November 2017 for US$80
million (CAD$105 million) in
cash. In addition to the cash consideration, GoGold retained a 2%
NSR on the Property, 1% of which can be bought back at any time for
US$7.5 million. Metalla views the
Property as having strong resource expansion potential on its large
42,000-hectare land package. The Property produced over 550,000
ounces of gold in the 1990's at an average head grade of 2.13 g/t
gold.
Since Agnico has acquired the Property, they have started an
initial drilling program that consists of 28,000 metres with a
budget of approximately $9.5 million,
focused on the evaluation of known mineralized zones with an
updated PEA expected in 2019.
Northern Sonora Mexico, where
the Property is located, has three northwest-trending
mineralization corridors, which each have distinctive regional
geological features. Santa
Gertrudis covers a potential strike length of 25 km of the
favourable Cretaceous-age Intra-caldera sedimentary belt. The
mineralized deposits form trends that are hosted mainly by the
sedimentary Mural Formation but are not restricted to this unit.
There is a distance of 18 km between the northernmost and
southernmost mineralized deposits with the balance remaining to be
explored.
In 2014, GoGold published a mineral resource estimate as
summarized in the following table:
|
Santa Gertrudis
Mineral Resources(1-5)
|
|
|
Indicated
|
Inferred
|
|
Type
|
Cut-off
Au g(1)
|
kTonnes
|
Au
g/t
|
Au
kOunces
|
kTonnes
|
Au
g/t
|
Au
kOunces
|
|
Oxide
|
0.16
|
22,072.3
|
1.06
|
751.2
|
6,696.8
|
0.96
|
207.1
|
|
Mixed
|
0.25
|
815.8
|
1.47
|
38.5
|
851.5
|
1.44
|
39.4
|
|
Sulphide
|
0.60
|
174.2
|
1.90
|
10.6
|
4.2
|
2.32
|
0.3
|
|
Amelia
Pads
|
0.20
|
244.3
|
1.19
|
9.4
|
192.5
|
1.25
|
7.7
|
|
|
|
|
|
|
|
|
|
Total
|
|
23,306.6
|
1.08
|
809.7
|
7,745.0
|
1.02
|
254.5
|
|
(1) Mineral resources
which are not mineral reserves do not have demonstrated economic
viability. The estimate of mineral
resources may be materially affected by environmental, permitting,
legal, title, taxation, sociopolitical, marketing, or other relevant issues.
|
|
(2)The mineral
resources in this estimate were calculated in accordance with the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM
Standards on Mineral Resources and Reserves, Definitions and
Guidelines as prepared by the CIM Standing Committee on Reserve
Definitions, as well as the requirements of National Instrument
43-101.
|
|
(3)All resources are
reported within an optimized pit shell developed using the
following economic parameters: Gold Price $1,300 per ounce. G&A
cost $0.80 per tonne. Mining cost $1.40 per tonne. Processing cost
$4.00 per tonne for oxides, carbonaceous oxides and mixed
oxide/sulphide deposits, and $22.00 per tonne for sulphides.
Process recoveries used are 75% for oxides and leach pad material,
and 50% for mixed oxide/sulphide deposits, and 90% for sulphides.
Optimized pit slopes are 50 degrees.
|
|
(4) The mineral
resource table incorporates 35 deposits and associated optimized
pit shells as well as three leach pads.
|
|
(5) TECHNICAL REPORT,
UPDATED RESOURCE ESTIMATE ON THE SANTA GERTRUDIS GOLD PROPERTY,
SONORA STATE, MEXICO FILED ON SEDAR ON AUGUST 1, 2014 BY GOGOLD
RESOURCES INC
|
QUALIFIED PERSON
The scientific and technical information contained in this press
release has been reviewed by Charles
Beaudry, M.Sc., P.Geo. and géo., a qualified person within
the meaning of NI 43-101.
ABOUT METALLA
Metalla was created to provide 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
ON BEHALF OF METALLA ROYALTY & STREAMING LTD.
"Brett Heath"
President and CEO
Technical and Third-Party Information
Except where otherwise stated, the disclosure in this press
release relating to the Santa Gertrudis 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 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 release contains certain "forward looking statements"
and certain "forward-looking information" as defined under
applicable Canadian and U.S. securities laws. Forward-looking
statements and information can generally be identified by the use
of forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans" or similar terminology.
Forward-looking statements and information include, but are
not limited to, statements with respect to the transactions
contemplated under the Santa
Gertrudis royalty transaction, anticipated cash flows upon
completion of the Transaction, the completion of the 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.
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.
SOURCE Metalla Royalty and Streaming Ltd.
