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Metalla Royalty and Streaming and Coeur Mining close US$20.7M secondary bought deal offering

Published: 10:39 30 Jun 2020 EDT

Metalla Royalty & Streaming Ltd -
The net proceeds of this secondary offering were paid directly to Coeur, while Metalla did not receive any proceeds

Metalla Royalty and Streaming Ltd (CVE:MTA) (NYSEAMERICAN:MTA) and Coeur Mining Inc (NYSE:CDE) said they had closed the previously announced public offering of 3.910 million Metalla shares currently held by Coeur at US$5.30 a throw for gross proceeds to Coeur of US$20.723 million.

The net proceeds of this secondary offering were paid directly to Coeur, while Metalla did not receive any proceeds, the firm said in a statement.

READ: The net proceeds of this secondary offering were paid directly to Coeur, while Metalla did not receive any proceeds, the firm said in a statement.

The offering included 510,000 shares due to an exercise in full of an over-allotment option and PI Financial Corp, Haywood Securities Inc and Cantor Fitzgerald Canada Corporation acted as co-lead underwriters for a syndicate of underwriters.

Before the completion of the offering, Coeur owned approximately 14.9% of the Metalla capital. Following completion and the repurchase by Coeur from Metalla of a 0.3875% royalty interest in Coeur's Wharf mine in exchange for 421,554 common shares of Metalla, Coeur owns 909,756  Metalla shares, or around  2.53% of the total capital.

In a separate statement on Tuesday, Metalla said it had completed the acquisition of a net 1% royalty interest on the operating Wharf mine (Wharf) owned by Coeur from third parties for total consideration of US$5.77 million, consisting of US$1 million in cash and the issue of 899,201 Metalla shares.

Wharf is an open pit, heap leach operation in South Dakota, which has been  in production since 1983.

It was acquired by Coeur in February 2015 from Goldcorp for cash of around $99.5 million. As part of this transaction, concurrent with the net 1.0% royalty interest acquired by Metalla, Coeur repurchased a separate 0.3875% royalty interest for cancellation.

Contact the author at giles@proactiveinvestors.com

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