Metalla Royalty & Streaming Ltd (CVE:MTA) announced Friday that it has closed the first tranche of its private placement financing, reaping gross proceeds of nearly C$3.53 million, and increased the size of its offering.
A total of 4,521,400 units of the company, which focuses on royalty and revenue streams from investments in the mining sector, were priced at C$0.78 per unit as part of the first offering.
Thanks to significant demand from investors, Metalla has also entered into an agreement with Haywood Securities as well as PI Financial and Canaccord Genuity to increase the size of the private placement offering to 8,724,896 units to raise gross proceeds of about C$6.8 million.
Each unit will consist of one common share and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire one common share of Metalla at a price of C$1.17 for a period of 24 months from the closing of the offering.
The second tranche of the offering, which is expected to yield additional gross proceeds of roughly C$3.3 million, is set to close on or about January 4 and is subject to regulatory approval.
Separately, Metalla also announced that it has completed its acquisition of the 1.5% net smelter return royalty on the Cap-Oeste Sur East property in the province of Santa Cruz, Argentina from Patagonia Gold SA.
Shares of Metalla jumped 1.23% to hit C$0.82 in trading on Friday.