Metalla Royalty & Streaming Ltd (NYSEAMERICAN:MTA) (CVE:MTA) said it has completed its previously announced acquisition of a 2.5% net smelter return royalty interest on the northern and southern portions of Kirkland Lake Gold Ltd’s (TSE:KL) Fosterville mine in Victoria, Australia, for A$6 million, consisting of A$2 million in cash and 467,730 Metalla shares.
Fosterville is a high-grade, low-cost underground gold mine which has been in production since 2005. In 2019, the mine produced 619 kilo-ounces (koz) of gold at a grade of 39.6 grams per tonne (g/t) and a cash cost of US$119 per oz and all-in sustaining cost (AISC) of US$291 per oz. Kirkland Lake also recently reissued its guidance for 2020 at Fosterville where it anticipates producing 590 - 610koz of gold at an operating cost of US$130-US$150 per oz of gold.
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Metalla also highlighted that recent drilling in the Harrier system has continued to return encouraging results, demonstrating a sustained growth opportunity down dip and in the southern extensions. New drilling has also returned high-grade mineralization outside of the existing mineral reserves, and also demonstrated the continuity of the Harrier structure for 400 meters down plunge while remaining open at depth with an intercept of 8.1 g/t gold over 4.5 meters.
Metalla aims to provide shareholders with leveraged precious metal exposure by acquiring royalties and streams and increase its share value by “accumulating a diversified portfolio of royalties and streams with attractive returns”.
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