leadf
logo-loader
viewMetalla Royalty & Streaming Ltd

Metalla Royalty & Streaming strikes $12M convertible loan deal with Beedie Capital

The loan, which will fund new acquisitions of royalties and streams, will consist of an initial advance of $7 million

Canadian dollar
The money will be used for new royalties and streams, the firm said

Metalla Royalty & Streaming Ltd (CVE:MTA) says Beedie Capital will become a strategic investor in the group after the Vancouver-based  company struck a convertible loan facility of $12 million with the latter.

The loan, which will fund new acquisitions of royalties and streams, will consist of an initial advance of $7 million within 90 days from closing.

READ THE BIG PICTURE: Metalla Royalty & Streaming enjoying high growth period as it expands portfolio

The remaining $5 million will be available for subsequent advances in minimum tranches of $1.25 million each.

"We are pleased to welcome Beedie as a partner and strategic investor in Metalla. Beedie has proven to be an exceptional capital partner for growing businesses. We look forward to having the financial support and backing of Beedie through our next stage of growth as we continue to add more accretive royalties to our portfolio," said Brett Heath, the president and CEO of Metalla.

The loan carries an interest rate of 8% on advanced funds and 2.5% on standby funds available.

The principal payment is due 48 months after the date the financing is completed. The principal amount will be convertible into Mettala shares at $1.39, representing a 25% premium to the 30-day volume weighted average price as of March 15, 2019.

"We are very excited to partner with the Metalla team at their inflection point of becoming a premier precious metals royalty company," said David Bell, director at Beedie Capital. "We are impressed by Metalla's ability to repeatedly identify and acquire highly accretive royalty assets and look forward to supporting them in their next phase of value creation for all of the company’s stakeholders."

Contact Giles at giles@proactiveinvestors.com

Follow him on Twitter@Gile74

Quick facts: Metalla Royalty & Streaming Ltd

Price: 10.54 CAD

TSX-V:MTA
Market: TSX-V
Market Cap: $381.48 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Metalla Royalty & Streaming Ltd named herein, including the promotion by the Company of Metalla Royalty & Streaming Ltd in any Content on the...

FOR OUR FULL DISCLAIMER CLICK HERE

Metalla Royalty & Streaming signs agreement with Morgan Stanley for royalty...

Metalla Royalty & Streaming Ltd (NYSE American: MTA-CVE: TSXV: MTA) President and CEO Brett Heath joined Steve Darling from Proactive with news Metalla has entered into a purchase and sale agreement with Morgan Stanley Capital Group to acquire an existing 27.5% price participation royalty...

4 days, 15 hours ago

2 min read