(All dollar amounts are in United States dollars unless otherwise
indicated)
TSXV:
MTA
NYSE American: MTA
VANCOUVER, BC, Aug. 12,
2022 /CNW/ - Metalla Royalty & Streaming
Ltd. ("Metalla" or the "Company") (TSXV:
MTA) (NYSE: MTA) announces its operating and financial results for
the three and six months ended June 30,
2022. For complete details of the condensed interim
consolidated financial statements and accompanying management's
discussion and analysis for the three and six months ended
June 30, 2022, please see the
Company's filings on SEDAR (www.sedar.com) or EDGAR (www.sec.gov).
Shareholders are encouraged to visit the Company's website at
www.metallaroyalty.com.
Brett Heath, President, and
CEO of Metalla, commented, "In the second quarter of 2022, we saw
several significant advancements and milestones achieved within our
royalty portfolio. G Mining's Tocantinzinho project secured a
$481M financing package, expected to
reach production in the second half of 2024. Wasamac's production
profile was increased to 250k oz Au
per year by Yamana Gold, making it an expected top 10 gold producer
in Canada. We also saw discoveries
made at Moneta's Garrison project and Canadian Malartic's Camflo
property that look to provide even more potential upside. We
are pleased to see our assets continue to advance and benefit from
our strong counterparties at a time when equity and debt markets
remain constrained."
FINANCIAL HIGHLIGHTS
During the six months ended June 30,
2022, and the subsequent period up to the date of this news
release, the Company:
- Noted the following key milestones announced by operators of
certain properties in its portfolio of royalties and streams
(please see the 'Asset Updates' section of this press release for
the details of these announcements):
-
-
- Monarch Mining Corporation ("Monarch") announced that
new production has started at the Beaufor Mine (1.0% Net Smelter
Returns ("NSR") royalty) to bring the total number of
producing assets in which the Company has an interest to six, with
the first royalty payment from Beaufor expected in the second half
of 2022;
- G Mining Ventures Corp. ("G Mining") announced a
$481 million financing package to
fully fund the construction of the Tocantinzinho ("TZ") Gold
Project (0.75% Gross Value Return ("GVR") royalty),
targeting production for the second half of 2024;
- Yamana Gold Inc. ("Yamana") announced its second
increase in the projected annual output from its Wasamac Mine (1.5%
NSR royalty) since acquiring the project in 2021. Originally slated
to produce 169 Koz annually when acquired by Yamana, the projected
output has subsequently been raised to 250 Koz annually until at
least 2030 and over 200 Koz annually over the initial 15 years.
Bulk sample permit approvals are expected in early 2023 and ramp
development could begin in spring 2023;
- Moneta Gold Inc. ("Moneta") announced a new discovery at
the Garrison project (2.0% NSR royalty), where drilling to the west
of the Garrcon Starter pit hit 50.09 g/t gold over 5.05 meters,
highlighting the continued potential to significantly expand the
Garrcon resource base and support an underground operation at the
mine. Moneta expects to release an updated Preliminary Economic
Assessment in the second half of 2022; and
- Yamana recently reported that the Canadian Malartic partnership
had identified a porphyry-hosted gold mineralization that could
potentially be mined via an open pit from the Camflo property (1.0%
NSR royalty).
- Amended an existing 1.0% NSR royalty on Monarch's Beaufor Mine.
In consideration for $1.0 million
paid in cash to Monarch, Monarch agreed to waive a clause
stipulating that payments under the NSR royalty were only payable
after 100 Koz of gold have been produced by Monarch following its
acquisition of Beaufor Mine. Payments under this NSR royalty
will commence shortly as Monarch announced the start of production
during July 2022 (see below).
- For the three months ended June 30,
2022, received or accrued payments on 560 attributable Gold
Equivalent Ounces ("GEOs") at an average realized price of
$1,844 and an average cash cost of
$9 per attributable GEO (see non-IFRS
Financial Measures). For the six months ended June 30, 2022, received or accrued payments on
1,284 attributable GEOs at an average realized price of
$1,839 and an average cash cost of
$7 per attributable GEO (see non-IFRS
Financial Measures);
- For the three months ended June 30,
2022, recognized revenue from royalty and stream interests,
including fixed royalty payments, of $0.5
million, net loss of $1.4
million, and adjusted EBITDA of negative $0.2 million (see non-IFRS Financial Measures).
For the six months ended June 30,
2022, recognized revenue from royalty and stream interests,
including fixed royalty payments, of $1.1
million, net loss of $3.6
million, and adjusted EBITDA of negative $0.2 million (see non-IFRS Financial
Measures);
- For the three months ended June 30,
2022, generated operating cash margin of $1,835 per attributable GEO, and for the six
months ended June 30, 2022, generate
operating cash margin of $1,832 per
attributable GEO, from the Wharf, Joaquin, and COSE royalties, the
New Luika Gold Mine ("NLGM") stream held by Silverback Ltd.
("Silverback"), the Higginsville derivative royalty asset,
and other royalty interests (see non-IFRS Financial Measures);
- For the three months ended June 30,
2022, recognized payments due or received (not included in
revenue) from the Higginsville derivative royalty asset of
$0.6 million, and for the six months
ended June 30, 2022, recognized
payments due or received from the Higginsville derivative royalty
asset of $1.2 million (see non-IFRS
Financial Measures);
- On May 12, 2022, the Company
filed a new final short form base shelf prospectus and a
corresponding registration statement on Form F-10 that replaced the
base shelf prospectus and Form F-10 registration statement
previously filed by the Company in 2020, and to enhance the
Company's financial flexibility. In connection with this
transition, the Company terminated its At-The-Market ("ATM")
program announced on May 14, 2021
(the "2021 ATM Program"). From inception on May 14, 2021, to the termination on May 12, 2022, the Company distributed 1,990,778
common shares under the 2021 ATM program at an average price of
$8.18 per share for gross proceeds of
$16.3 million, of which 20,170 common
shares were sold during the three months ended June 30, 2022, at an average price of
$7.13 per common share for gross
proceeds of $0.1 million;
- On May 27, 2022, the Company
announced that it had entered into a new equity distribution
agreement with a syndicate of agents to establish an ATM equity
program (the "2022 ATM Program") under which the Company may
distribute up to $50.0 million (or
the equivalent in Canadian Dollars) in common shares of the
Company. From inception to the date of this press release, the
Company did not distribute any common shares under the 2022 ATM
program; and
- In August 2022, the Company and
Beedie Capital entered into an agreement to extend the maturity
date of its loan facility from April 21,
2023, to January 22, 2024 (the
"Loan Extension"). In consideration for the Loan Extension
the Company incurred a fee of 2.0% of the currently drawn amount of
C$8.0 million, the C$160,000 fee will be convertible into common
shares at a conversion price of C$7.34 per share, calculated based on a 20%
premium to the 30-day Volume Weighted Average Price of the
Company's common shares on the trading day immediately prior to the
effective date of the Loan Extension. The Loan Extension is subject
to stock exchange approvals which are pending.
ASSET UPDATES
Beaufor Mine
On July 5, 2022, Monarch announced
that it had begun processing ore from its Beaufor Mine at its
wholly-owned Beacon Mill, it reported it had stockpiled a total of
30,549 tonnes of ore averaging 4.76 g/t gold and would start
feeding the mill with that ore and expected to pour its first bar
of gold in July 2022. On July 27, 2022, Monarch further announced the
production of its first gold bar from the Beaufor Mine, and
announced it expects to reach commercial production in the coming
months.
On June 16, 2022, Monarch reported
results from recent drilling at the Q Zone where significant
intercepts include 122 g/t over 1.4 meters, 20.74 g/t over 3.3
meters, 83.2 g/t gold over 0.5 meters and 18.87 g/t gold over 1.2
meters. On July 25, 2022, Monarch
reported high grade results from drilling at the Q Zone that
included 37.59 g/t gold over 2.5 meters, 29.79 g/t gold over 2.45
meters and 418 g/t gold over 0.63 meters, highlighting the
potential to expand the Q Zone at depth.
Metalla holds a 1.0% NSR royalty on the Beaufor mine.
Wharf Royalty
On August 3, 2022, Coeur Mining
Inc. ("Coeur") reported second quarter production of 20.4
Koz gold at 0.47 g/t gold, in line with the 70-80 Koz full year
guidance for Wharf disclosed by Wharf on February 16, 2022. During the quarter, one
reverse circulation ("RC") drill rig had completed a
resource conversion program at the Portland-Ridge-Boston claim group and at the Flossie
area.
On February 16, 2022, Coeur
reported that Wharf's updated Proven and Probable Reserves totaled
852 Koz at 0.73 g/t. Total Measured and Indicated Resources were
reported at 412 Koz at 0.63g/t with an Inferred Resource estimate
of 90 Koz at 0.75 g/t. In addition, Coeur reported in their Q4 2021
financial statements, an updated mine life of 8 years for Wharf.
Additionally, Coeur reported the continued exploration success at
Wharf where a total of 6,625 meters of drilling was completed in
the Portland Ridge – Boston claim
group, Flossie and Juno areas. Coeur spent $4 million on exploration at the mine in 2021,
its largest since acquiring the asset in 2015.
Metalla holds a 1.0% GVR royalty on the Wharf mine.
New Luika Silver Stream
On July 21, 2022, Shanta Gold
Limited ("Shanta") reported that it produced 17.5 Koz of
gold at its NLGM in Tanzania in
the second quarter of 2022, in line with full year production
guidance of 68-76 Koz gold. On July 19,
2021, Shanta announced a new mine plan for NLGM, where
average annual production is expected to be 73.6 Koz gold with the
potential to extend mine life beyond 2026 through conversion of
significant known resources and the expanded 2,450 tpd mill
throughput. Shanta expects total gold production from NLGM for the
five-year plan to total 368 Koz from both open pit and underground
mine sources from the mining license.
Metalla holds a 15% interest in Silverback, whose sole business
is receipt and distribution of a 100% silver stream on NLGM at an
ongoing cost of 10% of the spot silver price.
Côté-Gosselin
On August 3, 2022, IAMGOLD
Corporation ("IAMGOLD") reported that construction had
reached 57% completion at the Côté Gold Project. It also reported
completion in the second quarter of 2022 of approximately 10,500
meters of the 16,000 meter drill program is planned in 2022 to
further delineate and expand the Gosselin mineral resources and
test selected targets along the deposit corridor. In addition,
IAMGOLD completed a project update to the Côté life-of-mine plans
where the update proposes an 18-year mine life with initial
production expected in early 2024. Average annual production during
the first six years is expected to be 495 Koz gold and 365 Koz over
the life-of-mine.
Metalla holds a 1.35% NSR royalty that covers less than 10% of
the Côté reserves and resources estimate and covers all of the
Gosselin resource estimate.
Castle Mountain
Castle Mountain is slated to become one of Equinox Gold's
("Equinox") largest assets. Metalla's 5.0% NSR royalty
covers the South Domes portion of the deposit which will be part of
the Phase 2 expansion slated to begin in 2026.
On August 3, 2022, Equinox
reported production in the second quarter of 6.7 Koz gold and
exploration expenditure in the second quarter of $0.5 million at the Castle Mountain property.
This was in addition to the exploration announced on May 3, 2022, where drilling in the first quarter
included 7,948 meters of RC drilling across the South dump area to
assess the continuity and distribution of grade. Equinox also
completed 1,448 meters of RC drilling in the area between the JSLA
and South Domes pits.
Equinox also announced that in March
2022 it had submitted applications to amend existing permits
to accommodate the Phase 2 expansion. On February 24, 2022, Equinox announced they expect
to spend $7 million for Phase 2
permitting, optimization studies and metallurgical test work and
nearly $2 million for exploration. As
of August 3, 2022, the Phase 2
permitting timeline was on schedule with the San Bernardino County
having determined the application was complete. Equinox expects the
U.S. Bureau of Land management to complete its completeness review
by the end of July with the application reviews to run through to
the end of 2022. Both agencies will determine the appropriate level
of state and federal environmental review required with the
resulting review process anticipated to begin by early 2023.
Metalla holds a 5.0% NSR royalty on the South Domes area of the
Castle Mountain mine.
Garrison
On July 7, 2022, Moneta released
the results of exploration drilling at the Garrison deposit in
their Tower Gold project. Drilling results tested new areas all
within the Tower Gold project, including east and west of the
Garrcon resource, south of the Westaway resource at South Basin,
east of the Windjammer South resource at Halfway, and west of the
55 deposit. Drilling has confirmed significant gold mineralization
beyond the current resource. Highlights include a drill hole that
intercepted significant mineralization with 50.09 g/t gold over
5.05 meters and 0.66 g/t gold over 16 meters. The holes highlight
the potential to expand the Garrcon resource pit shells and open
new targets for future exploration drilling.
On May 11, 2022, Moneta released
an updated resource estimate for the Tower Gold project, including
4.27 Moz gold in the Indicated category and 7.5 Moz gold in the
Inferred category. Moneta plans to complete a Preliminary Economic
Assessment on the project scheduled for completion later in the
second quarter of 2022. The Garrison deposit forms part of the
Tower project and is comprised of three zones, Garrcon, Jonpol, and
903. At Garrcon, the open pit Indicated Resource is 841 Koz at 1.02
g/t gold with an Inferred Resource of 15Koz at 0.67 g/t gold, the
underground portion has an Indicated Resource of 87 Koz at 5.08 g/t
gold with an Inferred Resource of 120 Koz at 4.98 g/t gold. The
Jonpol zone has an Indicated Resource of 297 Koz at 1.4 g/t gold
and an Inferred Resource of 114 Koz at 0.99 g/t gold. The 903 zone
has an Indicated Resource of 610 Koz at 1.01 g/t gold and an
Inferred Resource of 600 Koz at 0.74 g/t gold. The Garrison starter
pit now has an Indicated Resource of 1.75 Moz at 1.07 g/t gold.
Moneta is slated to release a PEA in the second half of 2022.
Metalla holds a 2.0% NSR royalty on the Garrison project.
Wasamac
On July 7, 2022, Yamana announced
the approval of the Wasamac bulk sample program, providing for
earlier access to the deposit and to increase the level of
confidence in the future mining of the project. Permit approvals
are expected in early 2023 with ramp development potentially
beginning in Spring 2023. A reassessment of the Wasamac project
highlighted an improved gold production profile compared to the
feasibility study with new projections of ramp-up to 200 Koz in
2027 and up to 250 Koz in 2028. Ongoing mine design and sequence
optimizations could position Wasamac with the option for future
incremental expansion of the mill to 9,000 tpd from 7,000 tpd in
year 3 of operations which will extend the gold production profile
of 250 Koz per year until at least 2030. Yamana also highlighted
additional opportunities not included in the strategic plan which
include processing flow sheet optimization to increase
metallurgical recoveries by approximately 3%, optimized
configuration of the tailings filter plant and paste backfill
plant. Yamana also announced that bulk sample permits are scheduled
for submission in the third quarter of 2022, with the approval
expected in early 2023 and ramp development could begin in spring
2023.
On July 27, 2022, Yamana announced
positive results from infill drilling at the Wasamac project where
grades continue to exceed expectations with significant results
include 5.05 g/t gold over 54.06 meters and 5.45 g/t gold over 16.8
meters. Exploration drilling at the Wildcat South target continued
to expand on the discovery with a significant intercept of 7.31 g/t
gold over 3.37 meters and 1.46 g/t gold over 12.3 meters.
Metalla holds a 1.5% NSR royalty on the Wasamac project subject
to a buy back of 0.5% for C$7.5
million.
Amalgamated Kirkland Property
On July 27, 2022, Agnico Eagle
Mines Limited ("Agnico") reported that an assessment was
ongoing at the Amalgamated Kirkland deposit to provide incremental
ore feed to the Macassa mill with annual production of 40 Koz as
soon as 2024. The Macassa underground ramp had been extended by 615
meters and twenty-four drill holes had been completed in the
higher-grade portion of the deposit. Significant intercepts from
the underground drill program include 14.1 g/t gold over 6.5
meters, 23.9 g/t gold over 2.0 meters and 14.9 g/t gold over 3.0
meters. Drilling from the surface drill program designed to infill
near surface mineralization proves to be successful in confirming
grade thicknesses with significant intercepts of 6.9 g/t gold over
6.7 meters, 5.9 g/t gold over 6 meters and 9 g/t gold over 9.2
meters.
In 2022, Agnico plans to spend $8.6
million on a 1.3 kilometre exploration ramp from the Macassa
near surface zones, designed to carry out infill drilling and a
bulk sample of the higher-grade regions of the Amalgamated Kirkland
deposit. On April 28, 2022, Agnico
reported that the Amalgamated Kirkland deposit hosts an Indicated
Resource estimate of 265 Koz gold at 6.51 g/t gold and an Inferred
Resource of 406 Koz at 5.32 g/t gold. The deposit remains open at
depth and extends laterally.
Metalla holds a 0.45% NSR royalty on the Amalgamated Kirkland
property.
El Realito
On July 27, 2022, Agnico reported
that pre-stripping of the El Realito pit was approximately 81%
compete. Pre-stripping activities at El Realito pit are in line
with forecast are expected to be completed in the third quarter of
2022. The production guidance in Agnico's February 23, 2022, press release for the La India
mine which hosts the El Realito pit were positively revised to 82.5
Koz gold in 2022, 70 Koz gold in 2023 and 22.5 Koz gold in 2024.
The increase in the production guidance was due to pit optimization
and increase in mineral reserves at the El Realito deposit.
Metalla holds a 2.0% NSR royalty on the El Realito deposit which
is subject to a 1.0% buyback right for $4.0
million.
Del Carmen
On May 4, 2022, Barrick Gold
Corporation reported that drilling at Del Carmen resumed in the
second quarter of 2022, drilling will continue until the winter
season. Results received at Carmen Norte, located to the north of
the Rojo Grande target, confirmed gold mineralization with an
intercept of 0.5 g/t gold over 39 meters, which opens up a new area
with upside potential to add resources to Del Carmen. In addition,
all geological models grade estimates and geometallurgical models
with be updated and rebuilding in the second quarter to inform
future steps for the project.
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 El Indio belt.
Fifteen Mile
Stream
On July 27, 2022, St. Barbara
Limited reported that the Fifteen Mile Stream project has been
extended to include all four identified resource open pits and
enable development of the full potential of the project. Permitting
application for Fifteen Mile Stream under the Canadian Federal
protocol have been made and will be determined in August 2022.
Metalla holds a 1.0% NSR royalty on the Fifteen Mile Stream
project, and 3.0% NSR royalty on the Plenty and Seloam Brook
deposits.
Tocantinzinho
On July 18, 2022, G Mining
announced a $481 million financing
package, which included a gold stream, term-loan, and equity
placement from Franco-Nevada Corporation for $353 million, for the development of the TZ Gold
Project located in Para State, Brazil, providing for full financing required
for the project. In addition, Eldorado Gold and La Mancha
participated for $89 million in
equity placements. Project financing is now in place for full
construction to begin in Q3 2023 and targeting production for the
second half of 2024.
G Mining had previously announced a feasibility study for the TZ
Gold Project was completed in the previous quarter, which confirmed
a 10.5-year mine life producing 1.8 Moz of gold in total resulting
in an average annual gold production profile of 174,700 ounces at
an all-in sustaining cost of $681/oz.
Economics were favourable, at a $1,600/oz gold price the study demonstrated an
after-tax NPV5% of $622
million and generated an after-tax IRR of 24%. Also of note,
G Mining increased the reserves at TZ by 12% to 2.0 Moz and saw an
increase in the capital cost at the project of only 7% since the
last study was conducted. Project optimization and detailed
engineering is expected to occur from Q4 2021 through to Q4 2022. G
Mining also expects to complete two drilling campaigns totaling
10,000 meters beginning in Q4 2021 through to Q1 2022, these
include a grade control drilling program to de-risk early years of
production and an exploration drilling program to test for
potential extensions of the known mineralization at depth and below
the current pit.
G Mining is a precious metals development company with a
leadership team which has built four mines in South America, including the Merian mine for
Newmont Corporation and Fruta Del Norte for Lundin Gold.
Metalla holds a 0.75% GVR royalty on the Tocantinzinho
project.
Fosterville
On July 27, 2022, Agnico reported
that gold production from Fosterville for the first six months of the
operation was 168 Koz gold. During the quarter, the Robbins Hill
and Phoenix exploration declines
were completed allowing for the advancement of exploration drilling
in the prospective areas.
On February 23, 2022, Agnico
reported that they expect to spend $34.6
million for 121,400 metres of drilling and development to
replace mineral reserve depletion and to add mineral resources at
the Fosterville mine. Agnico
announced that another $19.7 million
will be spent on underground and surface exploration with the aim
to discover additional high-grade mineralization, with $2.9 million to be spent on regional exploration
drilling on the land package surrounding the mine.
Metalla holds a 2.5% GVR royalty on the Northern and Southern
extensions of the Fosterville
mining license and other areas in the land package.
CentroGold
On July 25, 2022, Oz Minerals
stated that the relocation plan required for progressing the court
injunction removal for CentroGold was still in review with the
National Institute of Colonization and Agrarian Reform (INCRA). In
addition, exploration expenses of $0.9
million were spent on the project for the quarter.
Metalla holds a 1.0-2.0% NSR royalty on the CentroGold
project.
Camflo
On July 27, 2022, Yamana reported
the Canadian Malartic partnership has identified porphyry hosted
gold mineralization that could potentially be mined via an open pit
at the Camflo property and provide tonnage to the Canadian Malartic
operation. Additional studies are underway to fully evaluate the
mineralization and additional potential in adjacent rock types. An
aggressive drill program is planned in 2023. The Camflo property
covers the past producing Camflo mine which had historical
production of approximately 1.6 Moz of gold.
Metalla holds a 1.0% NSR royalty on the Camflo mine, located
~1km northeast of the Canadian Malartic operation.
Montclerg
Through press releases dated July 20,
2022, and June 23, 2022, GFG
Resources Inc. ("GFG") reported high grade intervals at the
Montclerg Gold Project located 48 km east of the Timmins Gold
District. Significant intercepts include 1.32 g/t gold over 33.5
meters, 1.6 g/t gold over 70.4 meters and a 4.95 g/t gold over 8.3
meters. Step-out drilling has demonstrated the Montclerg deposit
continues for 530 meters to the east and remains open. GFG are
planning to complete a 8,000-10,000 meter drill program in
2022.
Metalla holds a 1.0% NSR royalty on the Montclerg property.
Detour DNA
On July 28, 2022, Agnico reported
that exploration plans will investigate the Sunday Lake deformation
zone along strike to the west and east of the mine. In addition,
step out drilling two kilometres west of the current pit out has
encountered significant intersections including 32.3 g/t gold over
4.8 meters outlining the potential for an underground
operation.
Metalla holds a 2.0% NSR royalty on the Detour DNA property
which is ~7km west of the Detour West reserve pit margin.
Green Springs
On August 9, 2022, Contact Gold
reported results from the first 3 drill holes from the 2022
step-out drill program at the Green Springs oxide gold project in
the Cortez Trend, Nevada. Significant results from the X-Ray zone
include 1.66 g/t gold over 28.96 meters and 0.82 g/t gold over
35.05 meters. Results from the remaining 20 holes are pending.
Metalla holds a 2.0% NSR royalty on the Green Springs
project.
Red Hill
On June 21, 2022, NuLegacy Gold
Corporation reported an updated exploration plan for Red Hill for
2022-2023 with a 29-hole program expected to have begun in
July 2022.
Metalla holds a 1.5% GOR royalty on the Red Hill property which
is in close proximity to Nevada Gold Mines
Cortez operations.
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 of the Ordre des Géologues du
Québec and a director of Metalla. Mr. Beaudry is a QP 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.
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 and six months ended
June 30, 2022, as filed on SEDAR and
as available on the Company's website for further details. Metalla
has included certain performance measures in this press release
that do not have any standardized meaning prescribed by IFRS
including (a) attributable gold equivalent ounces (GEOs), (b)
average cash cost per attributable GEO, (c) average realized price
per attributable GEO, (d) operating cash margin per attributable
GEO, which is based on the two preceding measures, and (e) adjusted
EBITDA. In the precious metals mining industry, this is a common
performance measure but does not have any standardized meaning. The
Company believes that, in addition to conventional measures
prepared in accordance with IFRS, certain investors use this
information to evaluate the Company's performance and ability to
generate cash flow. The presentation of these non-IFRS measures is
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Other companies may
calculate these non-IFRS measures differently.
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 U.S. Securities and Exchange
Commission (the "SEC")
applicable to U.S. domestic issuers. Accordingly, the
scientific and technical information contained or
referenced in this press release may not be
comparable to similar information made public by
U.S. companies subject to the reporting and
disclosure requirements of the SEC.
"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 successful completion of certain
milestones in respect to the CentroGold project; the satisfaction
of future payment obligations and contingent commitments
by Metalla; the effectiveness, and potential use and benefit of,
the Company's final short form base shelf prospectus and Form F-10
registration statement; the future sales of common shares under the
2022 ATM program and the value of the gross proceeds to be
raised; the completion by property owners of announced
drilling programs, capital expenditures, and other planned
activities in relation to properties on which the Company
and its subsidiaries hold a royalty or streaming
interest and the expected timing thereof;
production and life of mine estimates or forecasts at the
properties on which the Company and its subsidiaries hold a royalty
or streaming interest; the closing of the Loan Extension; future
disclosure by property owners and the expected timing thereof; the
completion by property owners of announced capital expenditure
programs; the estimated production at Beaufor, Wharf, Higginsville,
Beta Hunt, NLGM and La India;; the results of the permitting
application for Fifteen Mile Stream under the Canadian Federal
protocol; the anticipated results from the recently completed RC
drill rig resource conversion program at the Portland-Ridge-Boston claim group and at the Flossie area;
the completion of the drill program to further delineate and expand
the Gosselin mineral resources and test selected targets along the
deposit corridor;; the completion of a Preliminary
Economic Assessment on the Tower Gold Project, and the timing
thereof; the completion of pre-stripping activities at El
Realito and the expected timing thereof; the future start of mining
operations at Beacon Mill and the expected timing thereof;
the progression of the court injunction removal at the
CentroGold property; expectation that the U.S.
Bureau of Land management will compete its completeness review by
the end of July with the application reviews to run
through to the end of 2022 with respect to the Phase
2 permit application for Castle Mountain; future
opportunities for Equinox Gold to move South Domes earlier in the
mine plan at Castle Mountain; the potential for Castle Mountain
mine to become one of Equinox Gold's largest assets; expected
timing of the preliminary economic assessment at the Tower Gold
project by Moneta; the completion of two drilling campaigns
at Tocantinzinho and the anticipated timing
thereof; anticipated results of the completed
exploration declines at Fosterville mine, including the feasibility
for the advancement of exploration drilling in the prospective
areas; the expectation that G Mining's $481
million financing package will fully fund the construction
of the TZ Gold Project, and the anticipated timing thereof; the
potential for product at the TZ Gold Project and the timing
thereof; the anticipated timing of the bulk sample approvals in
respect to the Wasamac Mine; engaging in ramp development at the
Wasamac Mine and the timing thereof; the potential to significantly
expand the Garrcon resource base and support an underground
operation at the mine; the release an updated Preliminary Economic
Assessment by Moneta with respect to the Garrison Project, and the
anticipated timing thereof; the potential that the porphyry hosted
gold mineralization identified by the Canadian Malartic
partnership may be mined via an open pit from the Camflo property
(1.0% NSR); continuation of the drilling at Del Carmen; receipt of
permits for Fifteen Mile Steam under the Canadian Federal protocol,
and timing thereof; investigation of the Sunday Lake deformation,
and anticipated results thereof; the completion of project
optimization and detailed engineering at Tocantinzinho and the
anticipated timing thereof; the replacement of
mineral reserve depletion and addition of mineral resources at the
Fosterville mine; the potential
production at the Wasamac project; the future production at the
Amalgamated Kirkland deposit and the anticipated timing
thereof; the amount and timing of the
attributable GEOs expected by the Company in 2022; the
future production at El Realito and the anticipated timing thereof;
the increase of producing royalties to seven; future expectations
regarding the royalties and streams of Metalla;
royalty payments to be paid to Metalla by property owners or
operators of mining projects pursuant to each
royalty; the mineral reserves and resource estimates for the
properties with respect to which the Company has or
proposes to acquire an interest; future gold
and silver prices; other potential developments
relating to, or achievements by the counterparties for Metalla's
stream and royalty agreements, and with respect to
the mines and other properties in which Metalla has, or may
acquire, a stream or royalty
interest; and estimates of future
production, costs and other financial or economic
measures.
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:
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; inability to obtain stock
exchange approvals or otherwise satisfy the conditions to close the
Loan Extension; 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, as 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. Although we have
attempted to identify important factors that
could cause actual actions,
events or results
to differ materially from those described
in forward-looking statements, there may
be other factors that cause actions,
events or results
not to be as anticipated, estimated or intended.
There can be no assurance
that forward-looking statements will prove to be accurate,
as actual results and future events
could differ materially from those anticipated
in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. We are
under no obligation to update or alter any forward-looking statements except as required
under applicable securities laws. For the
reasons set forth above, undue reliance should not be placed on
forward-looking statements.
Website: www.metallaroyalty.com
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SOURCE Metalla Royalty and Streaming Ltd.
