Metalla Royalty & Streaming Ltd (CVE:MTA) (OTCMKTS:MTAFF) announced Tuesday that it has closed a $12 million convertible loan facility to fund the acquisition of new royalties.
The loan is courtesy of Beedie Capital and will be funded through an initial advance of $7 million within 90 days of closing.
The Vancouver-based company will have access to the remaining $5 million in minimum tranches of $1.25 million.
The loan facility carries an interest rate of 8% on advanced funds and 2.5% on standby funds available. Principal payment is due 48 months after the closing date of the deal.
The principal amount of the loan is convertible into Metalla shares at a conversion price of C$1.39 at the option of Beedie. Any shares acquired on conversion will be subject to a four-month hold period.
Metalla holds a total of 43 royalties and streams in global mining projects. The company recently acquired a package of 16 new royalties and two options from Alamos Gold.
Shares of Metalla eased around 2.8% on Tuesday to sit at C$1.03 in Toronto and are trading at US$0.76 in the US.
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