NYSE AMERICAN:
MTA
TSX-V: MTA
(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.
ON BEHALF OF METALLA ROYALTY & STREAMING LTD.
(signed) "Brett Heath"
Website: www.metallaroyalty.com
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements and
forward-looking information within the meaning of United States and Canadian regulations.
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 in this
release include, but are not limited to, statements with respect to
the potential achievement of milestones and payments in connection
therewith; the payment of the remaining $5
million purchase price; the anticipated or possible future
developments at the Castle Mountain Project and the
properties on which the Company currently holds royalty and stream
interests or relating to the companies owning or
operating such properties; the future value of the
Company's stock; future cash generation; and the
Company's potential to become a leading gold and silver
company. 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 risk that the
milestones may not be satisfied; risks associated with the impact
of general business and economic conditions; the
absence of control over mining operations from which Metalla will
purchase precious metals or from which it will
receive stream or royalty payments and risks related to those
mining operations, including risks related to
international operations, government and environmental
regulation, delays in mine development, construction and
operations, actual results of mining and current
exploration activities, conclusions of economic evaluations and
changes in project parameters as plans are refined;
problems related to the ability to market precious metals or other
metals; industry conditions, including commodity
price fluctuations, interest and exchange rate fluctuations;
interpretation by government entities of tax laws or
the implementation of new tax laws; regulatory, political or
economic developments in any of the countries where
properties in which Metalla holds a royalty, stream or other
interest are located or through which they are held;
risks related to the operators of the properties in which Metalla
holds a royalty or stream or other interest, including
changes in the ownership and control of such operators;
risks related to global pandemics, including the novel
coronavirus (COVID-19) global health pandemic, and
the spread of other viruses or pathogens; influence of
macroeconomic developments; business opportunities
that become available to, or are pursued by Metalla; reduced access
to debt and equity capital; litigation; title,
permit or license disputes related to interests on any of the
properties in which Metalla holds a royalty, stream
or other interest; the volatility of the stock market; competition;
future sales or issuances of debt or equity
securities; use of proceeds; dividend policy and future
payment of dividends; liquidity; market for securities; enforcement
of civil judgments; and risks relating to Metalla
potentially being a passive foreign investment company within the
meaning of U.S. federal tax laws; 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 U.S.
Securities and Exchange Commission on the EDGAR
website at www.sec.gov. 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.
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SOURCE Metalla Royalty and Streaming Ltd.
