The new acquisition of 16 royalties and two options increases Metalla’s portfolio to 43 royalties and streams.
Alamos is one of the premier gold producers in North America, with a market cap of C$2.7 billion, and after closing the deal, will hold around 6.3% of Metalla's capital.
The new package includes eight royalties in Canada, six in Peru, three royalties in Mexico and one in Chile.
The company said that additional royalties in Alamos portfolio, which are subject to rights of first refusal, consents and future options, will be acquired pursuant to a second or additional closings.
Highlights of package
Highlights of the new royalties include a 2% NSR (net smelter royalty) on the El Realito property owned and operated by Agnico Eagle, adjacent to its operating La India mine.
There is also a 1.5% NSR on the Wasamac Mine currently under development by Monarch Gold, 15 km west of Rouyn-Noranda in Quebec.
Metalla has also bought an option to purchase a 1% NSR royalty on the La Fortuna Mine currently under development by Minera Alamos located in Durango State, Mexico.
It has also bought a 1% NSR royalty on the producing Beaufor Mine operated by Monarch Gold, which lies 20km northeast of Val d'Or, Quebec. Since 1933, Beaufor has produced more than 1.16 Moz (million ounces) at a historical grade of 7.5g/t gold.
Another highlight is the 1% NSR on the San Luis property owned by SSR Mining, which liens in the Ancash Department in central Peru.
The project has mineral reserves of 7.2 million ounces of silver at an average grade of 447.2 g/t (grams per ton) and 0.29 million ounces of gold at a grade of 18.06 g/t as at the end of 2016.
As consideration for the new portfolio, Metalla will issue over 8.23 million shares at C$1.30 each for a total of US$8 million.
Shares of Metalla closed Tuesday in Canada at C$1.16 and in the US at US$0.86.
Giles Gwinnett also contributed to this report
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