The original loan facility of $12 million is from shareholder Beedie Capital, which said in a statement that it “looks forward to supporting the acceleration and growth” of the royalty company’s business, according to its managing director David Bell.
Beedie’s additional $20 million capital commitment brings the Vancouver-based royalty company’s convertible loan facility to over $32 million.
READ: Metalla Royalty & Streaming adds new royalty on Kirkland Lake Gold's high-grade Fosterville gold mine
Under the terms of the loan amendment, Beedie has agreed to convert $6 million out of the $7 million drawn as part of the initial $12 million loan at a price of C$5.56 per Metalla share as part of the conversion rights under the initial loan facility. The remaining $1 million outstanding is subject to conversion under the amendment.
Metalla will draw the remaining $5 million from the initial loan facility concurrent with the conversion and at a price of $9.90 per share, which is a 78% premium to the initial conversion price and a 27% premium on the 30-day volume-weighted average price (VWAP) on the TSX Venture Exchange.
All future advances from the $20 million loan will be a minimum of $2.5 million at a conversion price based on the 30-day VWAP on the date of the advance. If the 30-day VWAP is at a 50% premium above the conversion prices then Metalla may convert the principal amount under the facility at the respective conversion prices.
The reduced standby fee on undrawn funds was amended to an interest rate of 1.5% per annum from 2.5%, and the interest rate on all drawn funds remains at 8% per year.
'Repeatable and scalable strategy'
"We are thrilled to expand our productive and mutually beneficial relationship with Beedie Capital as a cornerstone investor as we continue to grow our business,” Metalla’s CEO Brett Health said in the statement Wednesday.
“Beedie Capital has been an extremely supportive shareholder of Metalla, and we look forward to deploying our expanded and enhanced facility on future accretive royalty and streaming transactions."
Beedie’s Bell added that Metalla’s team “(continues) to deliver on a repeatable and scalable strategy” of acquiring royalties and streams in high-growth projects.
Earlier this week Metalla closed the acquisition of a 2.5% net smelter return royalty on Kirkland Lake Gold’s high-grade Fosterville gold mine in Australia, bringing its portfolio to 50 streams.
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas