"We view this royalty as a great option on further exploration success at the Akasaba West property from one of the world's top gold producers,” said President and Chief Executive Brett Heath.
Metalla is a mining royalties specialist, which focuses on precious metals.
“The property sits in the famous Cadillac-Larder Lake Fault zone which has produced some of Canada's most well-known mines such as Agnico's Canadian Malartic, Goldex, LaRonde, and Lapa mines, and IAMGOLD's Westwood Gold mine," said Heath.
The Akasaba West property is a gold-copper deposit located in the Bourlamaque and Louvicourt Townships, Val d'Or, Quebec. The project is owned and operated by Agnico Eagle Mines Limited (TSE:AEM) and was acquired in 2014. The goal is to commence mining activities in 2020.
READ: METALLA ROYALTY AND STREAMING TO STRENGTHEN DEVELOPMENT PIPELINE WITH VALGOLD RESOURCES ACQUISITION
The royalty was acquired for C$250,000 in cash. Agnico will maintain its buy-back right of 1% for C$7 million. The royalty will be payable after gold production on the claims comprising the property exceeds 210,000 ounces.
Metalla Royalty shares were unchanged at C$0.80.