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Metalla Royalty and Streaming provides portfolio update

Metalla's current portfolio is made up of 43 royalties and streams, covering a "robust pipeline of development assets being advanced by some of the top operators in the gold industry," according to CEO Brett Heath

precious metals
Metalla is a precious metals royalty and streaming company, with a growing portfolio

Metalla Royalty and Streaming Ltd (CVE:MTA) (OTCMKTS:MTAFF) revealed an update Wednesday on its promising portfolio of royalties and streams.

The firm's current portfolio is made up of 43 royalties and streams, covering "a robust pipeline of development assets being advanced by some of the top operators in the gold industry and is expected to significantly increase our cash flow profile over the following years while we continue to add accretive assets to the portfolio," said CEO Brett Heath in a statement. 

READ: Shanta Gold extends New Luika mine life through to 2025

Notable highlights include Shanta Gold's (LON:SHG) New Luika Gold Mine (NLGM), located in Tanzania, in which Metalla holds a 15% silver stream on NLGM with the right to purchase silver at 10% of the prevailing spot price at delivery. 

Shanta Gold recently released an updated resource estimate there, which is expected to extend the mine life of the Tanzanian gold mine to at least 2025.

Exploration at the Bauhinia Creek (BC) Central deposit has converted 127,000 oz of inferred resources into 83,000 oz indicated with a grade of 7.85 g/t.

A further 58,000 ounces were added to inferred resources.

Shanta wants to keep the mine life at between 5-8 years and will next target an upgrade of 220,300 ounces of inferred resources at the deposits at BC, Ilunga, Luika and Elizabeth Hill.

READ: Metalla Royalty and Streaming closes acquisition of 2% royalty on El Realito

Metalla also gave an update on the Endeavor Silver stream in Australia, run by operator CBH Resources Limited. It has announced it will scale back production from 25,000 tonnes/month to 17,000 tonnes/month, while focusing on infill drilling of the new Deep Zinc Lode resource.

A production decision on the Deep Zinc Lode is expected in Q4 2019 with the potential to add 3-5 years of production.

"The Endeavor Silver stream has provided a meaningful return for shareholders in the two years since it was acquired with further upside potential remaining. It has already generated over 850,000 ounces of silver to Metalla's account, providing a payback and return on capital invested," said Heath. "The scaled-back production at Endeavor through the second half of this year is expected to be partially offset by the Joaquin and COSE royalties currently in development by Pan American Silver Corp. Both are expected to enter production during the coinciding period."

Metalla has the right to buy 100% of the silver production up to 20 million ounces from the Endeavor Mine for an operating cost contribution of US$1/oz for each ounce of payable silver, indexed annually for inflation, plus a further increment of 50% of the silver price over USD $7/oz.

At Atlantic Gold Corp's (CVE:AGB) Fifteen Mile Stream, in which Metalla holds a 1% NSR royalty, Atlantic has reported its plan of arrangement with St. Barbara Limited, and is expected to close on July 19, 2019. 

"Metalla views this as a positive step for our Fifteen Mile Stream royalty as the much larger, new operator of the mine will significantly reduce any financing risk on development capital needed to push forward to production on time," noted the firm. 

Metalla also enjoys a 2% NSR at the Santa Gertrudis, El Realito, and Akasaba West properties run by Agnico Eagle. Metalla said it expects further updates on the drilling from the increased budget at Santa Gertrudis following the discovery of new high-grade structures at Trinidad and follow up drilling on the back of ongoing successful exploration and infill at the recently acquired El Realito project which is part of the operating La India mine.

Shares of Metalla were at C$1.00 on Wednesday. 

Contact Katie Lewis at [email protected]

Quick facts: Metalla Royalty & Streaming Ltd

Price: 15.75 CAD

Market: TSX-V
Market Cap: $623.95 m

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