Metalla Royalty & Streaming Ltd (CVE:MTA) (NYSEAMERICAN:MTA) on Wednesday announced that it has agreed to acquire two, privately-held Utah corporations, Genesis Gold Corporation and Geological Services Inc, in a cash-and-stock transaction valued at US$4.125 million.
Genesis Gold and Geological Services hold a portfolio of royalties in Nevada and Utah, some of which provide Metalla Royalty with immediate advanced and escalating royalty payments on an annual basis. Genesis and Geological together hold 11 royalties covering more than 21,500 hectares of Carlin-type and epithermal deposits within the Battle Mountain-Eureka, Carlin, and Independence trends in Nevada, with one in Utah.
Metalla Royalty CEO Brett Heath commented on the agreement: "This transaction marks our sixth deal in 2020 in what has been one of our most active years since inception. We are pleased to significantly bolster our Nevada footprint with eleven development and exploration gold royalties, expanding our existing Cortez footprint."
Heath added: “The acquisition provides shareholders exposure to one of the top jurisdictions in the world covering more than 210 square kilometers on the Battle Mountain - Eureka , Carlin and Independence trends in Nevada. This year has showcased our premium pipeline and ability to transact on high quality royalties on an accretive/bilateral basis across various geographies that provide exposure to top counterparties and proven geological trends in Nevada, Australia, USA and Chile.”
The pending acquisition will expand Metalla's portfolio to 62 royalties and streams and will increase Metalla's exposure to the Cortez trend by expanding royalty footprint continuously to the south of Goldrush, owned by Nevada Gold Mines, a joint venture between Barrick (NYSE:GOLD) and Newmont (NYSE:NEM).
To satisfy the agreement, Metalla will issue US$3.125 million in common shares, at an average price of approximately C$10.22 per share, on January 4, 2021, and US$1.0 million in cash upon closing. The transaction is expected to close this month.
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