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Metalla closes $12M loan agreement to fund new royalties

Metalla holds a total of 43 royalties and streams in global mining projects
gold bars on US dollars
The $12 million loan will include an upfront payment of $7 million

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.

READ: Metalla Royalty & Streaming completes royalty acquisition from Alamos Gold

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.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

 

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