Nouveau Monde Graphite Inc. press release

Metalla Reports Audited Financial Results for Seven Months Ended December 31, 2020 and Provides Asset Updates

2021-03-26

TSX - Toronto Stock Exchange · Graphite · Canada

Canada NewsWire

(All dollar amounts are in United States dollars unless otherwise indicated)

TSXV: MTA NYSE American: MTA

VANCOUVER, BC , March 26, 2021 /CNW/ - Metalla Royalty & Streaming Ltd. (" Metalla " or the " Company ") (TSXV: MTA) (NYSE American: MTA) announces its operating and financial results for the seven months ended December 31, 2020 . Metalla has also filed with the U.S. Securities and Exchange Commission (the " SEC ") its SEC Annual Report on Form 40-F for the seven months ended December 31, 2020 . The Form 40-F includes the Company's Annual Information Form, audited financial statements and management's discussion & analysis for the seven months ended December 31, 2020 . For complete details of the consolidated financial statements and accompanying management's discussion and analysis for the seven months ended December 31, 2020 , please see the Company's filings on SEDAR ( www.sedar.com ) or on EDGAR ( www.sec.gov ). Shareholders are encouraged to visit the Company's website at http://www.metallaroyalty.com/ .

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Metalla shareholders may receive a hard copy of the Company's complete audited financial statements for the seven months ended December 31, 2020 , free of charge, upon request. For further information please visit the Company website at https://www.metallaroyalty.com/financial-reports/ .

Brett Heath , President, and CEO of Metalla, commented, "2020 represented another very successful year for Metalla shareholders. We completed a record of 7 transactions adding 18 high-quality accretive royalties. We added two producing assets with the Wharf and Higginsville royalties, two royalties that capture maximum optionality with Cortez and Fosterville , and more than a dozen others that provide growth, exploration upside, diversification, and further optionality. 2021 is already off to a great start with a record of 4 transactions completed in the first quarter, adding 5 development stage royalties with major counterparties capturing a significant amount of what we expect to be future organic growth. This year, we are excited to grow our business with the same disciplined and focused strategy that has made Metalla one of the top-performing royalty companies since its inception. "

FINANCIAL HIGHLIGHTS

During the seven months ended December 31, 2020 , and the subsequent period, the Company:

increased the number of royalties and streams held to a total of 68 precious metal assets through the following notable transactions: to December 31, 2020 , the Company had distributed 282,700 common shares under the ATM Program at an average price of $10.58 per share for gross proceeds of $3.0 million . As at the date of this MD&A, the Company had distributed a total of 1,301,593 common shares under the ATM program for gross proceeds of $12.9 million ; was added to the VanEck Vectors Junior Gold Miners ETF (NYSE: GDXJ) (the " GDXJ "), U.S. Global GO GOLD and Precious Metal Miners ETF (NYSE Arca: ‎GOAU), and the ETFMG Prime Junior Silver Miners ETF (NYSE Arca: SILJ); received or accrued payments on 1,404 ( May 31, 2020 – 1,989) attributable gold equivalent ounces at an average realized price of $1,784 ( May 31, 2020 - $1,589 ) and average cash cost of $18 ( May 31, 2020 - $607 ) per attributable gold equivalent oz. (see non-IFRS Financial Measures); generated operating cash margin of $1,766 ( May 31, 2020 - $983 ) per attributable gold equivalent ounce from the Wharf, Joaquin, COSE, the New Luika Gold Mine (" NLGM ") stream held by Silverback Ltd. (" Silverback "), the Higginsville derivative royalty asset, and other royalty interests (see non-IFRS Financial Measures); recognized revenue from royalty and stream interests, including fixed royalty payments, of $1.3 million ( May 31, 2020 - $2.8 million ), net loss of $4.7 million ( May 31, 2020 - $4.4 million ), and adjusted EBITDA of negative $1.0 million ( May 31, 2020 - negative $1.5 million ) (see non-IFRS Financial Measures); completed a secondary public offering for Coeur for a total of 3,910,000 common shares of the Company previously held, at a price of $5.30 per common share for gross proceeds of $20.7 million (the " Secondary Offering "). The net proceeds of the Secondary Offering were paid directly to Coeur; and completed an amendment of the convertible loan facility with Beedie Capital (" Beedie ") in August 2020 whereby Beedie converted C$6.0 million of the C$7.0 million initial advance at C$5.56 per share for a total of 1,079,136 shares. The Company drew down the remaining C$5.0 million from the original loan facility with a revised conversion price of C$9.90 per share and Beedie made an additional C$20.0 million available to the Company to fund future acquisitions. In October 2020 , Beedie converted the remaining C$1.0 million of the initial advance at C$5.56 per share for a total of 179,856 common shares. In March 2021 , Beedie converted the C$5.0 million outstanding at C$9.90 per share for a total of 505,050 common shares and the Company drew down an additional C$5.0 million from the amended loan facility with a conversion price of C$14.30 per share, in accordance with the terms of the amended loan facility. Following the three conversions and the additional drawdowns the Company has a total of C$5.0 million outstanding and C$15.0 million available on standby under the amended loan facility as at the date of this press release.

ASSET UPDATES

Santa Gertrudis

On February 11, 2021 , Agnico announced an updated mineral resource estimate for Santa Gertrudis with an Indicated resource of 111 Koz gold and 816 Koz silver (5,778 Kt at 0.6 g/t gold and 4.39 g/t silver) and inferred resource of 1,625 Koz gold and 7,715 Koz silver (27,671 Kt at 1.83 g/t gold and 8.67 g/t silver).

In the same quarter, in its February 11, 2021 news release, Agnico released drill results at the Amelia deposit in the Trinidad Trend that were not captured in the updated resource estimate. Several holes intersected known structures as well as new structures, notable intercepts include 5.7 g/t gold and 10 g/t silver over 33 meters, 4.8 g/t gold and 3 g/t silver over 4.2 meters and 2.8 g/t gold and 12 g/t silver over 12.4 metres. Drilling focused at Espiritu Santo in the Trinidad Trend showed that mineralization remains open at depth with highlight intercepts of 3.9 g/t gold and 36 g/t silver over 10.5 metres and 5.5 g/t gold and 16 g/t silver over 10.1 metres.

In the El Toro Trend, south of the Trinidad trend, drilling demonstrated higher grades below the mineral resource and suggested the presence of a potential feeder zone at depth similar to Amelia. Notable intercepts include 3.4 g/t gold and 1 g/t silver over 7.2 metres and 3.6 g/t gold and 2 g/t silver over 18 metres.

Southwest of the Amelia Deposit, shallow high-grade intercepts at the Santa Teresa Zone have refreshed the potential for the presence of larger structures controlling higher-grade mineralization to the west. Significant surface intercepts at Santa Teresa include 2.1 g/t gold and 47 g/t silver over 4.5 metres, 4 g/t gold and 4 g/t silver over 5.1 metres and 3.9 g/t gold and 10 g/t silver over 7.5 metres.

In the February 11, 2021 press release Agnico announced it expects to spend $11.0 million on 30,000 metres of drilling at Santa Gertrudis that will be focused on expanding the mineral resource, testing extensions of high-grade structures such as the Amelia deposit, exploring new targets and completing metallurgical test work. An updated mineral reserve and resource estimate and an updated preliminary economic assessment are expected in 2021.

Metalla holds a 2.0% NSR on Santa Gertrudis subject to Agnico's right to buy back 1% for $7.5 million .

Wharf Royalty

On February 17, 2021 , Coeur reported in a Form 8-K news release, that Wharf produced 93,056 ounces of gold at 0.84 g/t during 2020, meeting the production guidance range of 85 – 95 Koz that was revised upward during the year. Notably, second half gold production increased 31% from the first half of 2020. Activities during the year included general maintenance capital projects at Wharf and exploration drilling at the Richmond Hill target. Coeur has guided 85 – 95 Koz gold for 2021 production and expects to complete an infill program spending $5 -8 million focused on the southern edge of the existing resources at Wharf, called Portland Ridge.

Coeur experienced a productive exploration program at Wharf in 2020 with a strong resource and reserve estimate released February 17, 2021 . The Company released an updated reserve estimate of 720 Koz of gold, an additional 605 Koz of gold in the M&I mineral resource category and 67 Koz of gold in the inferred mineral resource category at the operation.

Metalla holds a 1.0% GVR royalty on the Wharf mine.

Higginsville Royalty

On January 19 and March 19, 2021 , Karora announced in a news release the production of 99,249 ounces of gold from its Higginsville and Beta Hunt operations in Western Australia , exceeding the top end of 2020 production guidance of 90-95 Koz. Karora has guided 2021 Higginsville and Beta Hunt production to amount to 105-115Koz of gold with an increase of the exploration budget of A$20 million to be allocated across Higginsville, Beta Hunt, and Spargos.

On Dec 16, 2020 Karora declared a Mineral Reserve estimate of 17,752 Kt at 1.5 g/t for 845 Koz gold with a measured and indicated mineral resource estimate of 29,994 Kt at 1.5 g/t for 1,466 Koz gold at the Higginsville operation.

Metalla holds a 27.5% PPR royalty interest on the difference between the London PM fix gold price and A$1,340 /oz on the first 2.5 Koz per quarter until a cumulative total of 34.0 Koz of gold at the Higginsville operation have been delivered. As at December 31, 2020 , 4.1 Koz have been delivered.

COSE & Joaquin Royalties

In its Management's Discussion & Analysis for the year ended December 31, 2020 , Pan American Silver Corp. (" Pan American ") guided that silver production (including Manantial Espejo) is forecast to be between 3.18 and 3.46 Moz in 2021, which is between 25% and 36% higher than the 2.55 Moz produced in 2020. Gold production in 2021 is forecast to be between 33.2 -35.3 Koz, which is 46% higher for gold than production in 2020 using the midpoint of guidance. The expected increase reflects higher anticipated throughput, particularly from the higher grade COSE and Joaquin operations, as the operating restrictions related to COVID-19 diminish during the year.

Metalla holds an NSR royalty of 1.5% and 2.0% on COSE and Joaquin mines, respectively.

New Luika Silver Stream

On March 2, 2021 , Shanta Gold Limited (" Shanta ") announced 2020 production met guidance for a total of 82,979 oz of gold production and 92,323 oz of silver production. During the year, Shanta completed upgrades to the processing plant to increase plant throughput, Shanta noted the plant throughput for 2020 achieved an all-time company record of 712Kt. 2021 production guidance has been set at approximately 80 Koz of gold. On January 20, 2021 , Shanta reported ore reserves of 3,980 Kt at 2.98 g/t for 382 Koz gold and resources exclusive of Reserves of 6,379 Kt at 2.27 g/t for 464 Koz gold. On December 16, 2020 , Shanta announced a new discovery on New Luika called Porcupine South, a JORC resource is expected on this new discovery later in 2021.

Metalla holds a 15% interest in Silverback Ltd. whose sole business is receipt and distribution of a silver stream on New Luika at an ongoing cost of 10% of the spot silver price.

Endeavor Silver Stream

After decades of successful operation, the operator of the Endeavor Mine, located in Cobar, Australia , CBH Resources Limited (" CBH ") suspended mining operations at the Endeavor Mine in December 2019 and placed it into care and maintenance. In October 2020 , CBH announced they have entered into a farm-in agreement with Sandfire Resources Ltd. (" Sandfire ") whereby Sandfire may earn-in up to a 100% interest in the Endeavor mine and surrounding exploration tenements. In a press release dated October 27, 2020 , Sandfire disclosed that it will bring its technical exploration and geological expertise to the project, with a focus on exploration within the surrounding tenement package aimed at making new discoveries which could leverage off the existing infrastructure. On February 25, 2021 , Sandfire reported diamond drilling was conducted during Q4 2020 to provide DHEM survey platforms targeting potential extensions to the Endeavor mine's mineralization.

Metalla has the right to buy 100% of the silver production up to 20 million ounces (12.6 million ounces remaining under the contract for delivery) from the Endeavor Mine for an operating cost contribution of $1.00 per ounce of payable silver, indexed annually for inflation, plus a further increment of 50% of the silver price in excess of $7.00 per oz.

Wasamac

On January 21, 2021 , Yamana Gold Inc. (" Yamana ") completed the acquisition of the Wasamac property and Camflo property and began advancing its Wasamac development plans. On February 11, 2021 , Yamana further provided plans on the Wasamac project outlining the potential for significant future exploration success and mineral resource conversion with the deposit remaining open along strike and open at depth. Yamana will be commencing an exploration and infill drilling campaign and other studies to refine and expand upon the potential of Wasamac. Yamana has guided towards a production start date in 2025.

Metalla holds a 1.5% NSR on the Wasamac project subject to a buy back of 0.5% for C$7.5 million .

Beaufor Mine

On January 28, 2021 , Monarch Mining Corporation (" Monarch ") announced an updated resource estimate for the Beaufor mine. As of December 31, 2020 , the Beaufor mine contained a M&I mineral resource estimate of 431Kt at 6.68 g/t for 92.7 Koz of gold and an inferred resource estimate of 134 Kt at 6.96 g/t for 30.1 Koz of gold. Monarch Mining will continue its exploration plan to grow the mineral resource with the ultimate plan to restart gold production within 8 to 14 months.

Metalla holds a 1.0% NSR on the Beaufor mine once Monarch has produced 100 Koz of gold. To date, approximately 27.3 Koz of gold have been produced from the property.

El Realito

Agnico in its February 11, 2021 , press release provided production guidance for the La India mine where the El Realito deposit is included in the reserve estimate. Production guidance for 2021, 2022 and 2023 is 77 Koz, 75Koz and 42.5Koz, respectively. Agnico also stated its intentions to complete a 20,000 metre drill program budgeted at $4 million focused on the extensions of the El Realito deposit and extensions to the Chipriona deposit. On October 28, 2020 , Agnico reported drilling was focused on the oxide and sulphide portions at El Realito. Drilling in the shallow oxides continued to confirm mineral resources and improved geological understanding of the deposit and its feeder structures, while deeper drilling expanded the sulphide mineralization at depth.

Metalla holds a 2.0% NSR royalty on the El Realito deposit which is subject to a 1.0% buyback right for $4 million .

Garrison

On January 14, 2021 , Moneta Porcupine Inc. (" Moneta ") completed the acquisition of the Garrison project from O3 Mining, amalgamating the projects that are within two kilometers under one company that now boasts a global resource of 8.4 Moz of gold. Moneta's acquisition came weeks after O3 Mining released an updated preliminary economic assessment study of the Garrison project on December 14, 2020 . The study outlined a 12-year mine plan producing 121 Koz of gold per year for the first 8 years with a 33% internal rate of return at $1,450 /oz gold. In conjunction with the acquisition, Moneta completed an oversubscribed C$22.6 million financing which will assist in funding its 70,000m program slated for 2021.

Metalla holds a 2% NSR Royalty on the Garrison project.

Fosterville

On March 18, 2021 , Kirkland Lake Gold announced drilling is expected to commence in April on the southern extension of the Fosterville mining lease, with up to four diamond drill rigs in the area operating for 24 hours a day. Exploration will be focused on discovery of mineralized systems extending from the Harrier and Daley's hill ore bodies and previously unidentified gold mineralization in the southern portion of the lease. In addition, Kirkland Lake Gold plans to conduct a regional Airborne Gravity Survey to identify corridors host to prospective mineralization in March/early April in a large area south of the mining lease. On February 25, 2021 , Kirkland Lake Gold announced fiscal year 2020 exploration totalled a COVID-19 reduced budget of $57.8 million for a total of 117,848 metres of surface and underground drilling at Fosterville . It reported that underground drilling during the fourth quarter continued to target the Harrier and Cygnet zones, as well at the Lower Phoenix System. 2021 expenditures at Fosterville are expected to be in the range of $85 - $95 million where drilling will continue to focus on Mineral Reserve and Mineral Resource replacement and identifying new high-grade zones, including Harrier, Lower Phoenix and Cygnet.

Metalla holds a 2.5% GVR royalty on the northern and southern sections of the Fosterville mining lease, which is not currently in production. Metalla had decided to reclassify this royalty as a Gross Value Return Royalty after confirming this royalty allows for no deductions.

Big Springs

On January 18, 2021 and January 25, 2021 , Anova Metals Limited (" Anova ") announced high grade drill results at the Big Springs project confirming and extending mineral resources. Significant intercepts include 3.96 g/t over 10.85 metres, 15.83 g/t over 5.49 metres, and 3.98 g/t gold over 4.54 metres. 2021 exploration will continue to aggressively focus on extensions to high grade mineralization at Big Springs.

Metalla holds a 2.0% NSR royalty on the Big Springs project.

Fifteen Mile Stream

St. Barbara Mining Limited (" St. Barbara ") announced in its February 17, 2021 , half year report that an updated Environmental Impact Statement for the Fifteen Mile Stream project was submitted to the local authorities and has guided to a 2024 production start date.

Metalla holds a 1.0% NSR Royalty on the Fifteen Mile Stream project with a further 3.0% NSR royalty covering the Plenty deposit (Plenty is subject to a 2% buy back for C$1.5 million ).

Hoyle Pond Extension

As of the end of 2020, approximately 9.5 Koz of gold were produced from mineral claims subject to Metalla's royalty and total reserves of 269 Kt of 11.4 g/t for 98.3 Koz of gold and measured, indicated, and inferred resources of 82.4 Kt at 7.7 g/t for 20.2 Koz of gold. Drilling is expected to continue in 2021 with a budget of 5,000-10,000 metres on the extension.

Metalla owns a 2.0% NSR royalty payable by Newmont Corporation on the Hoyle Pond Extension, located on claims that are beneath the Kidd metallurgical complex and immediately adjacent to the east and northeast of the Hoyle Pond mine complex. There is a 500,000 oz. gold exemption on the leased mining rights.

Green Springs

Upon completion of the 2020 drill program, Contact Gold Corp. (" Contact ") announced several drill highlights from drilling at the Green Springs project. In a news release dated November 16, 2020 , drill highlights from the Echo zone included 2.18 g/t gold over 28.9 metres. In a news release dated November 23, 2020 , drilling at the Zulu zone intersected 1.14 g/t gold over 25.9 metres. In a news release dated January 12, 2021 , drilling at the Echo zone intercepted 2.24 g/t gold over 35 metres and 1.49 g/t gold over 17.68 metres. In a news release dated January 26, 2021 , drilling at the Bravo zone returned 10.7 g/t over 4.57 metres and 1.23 g/t gold over 17 metres. Further, in a news release dated February 9, 2021 , drilling intersected 1.45 g/t over 39 metres at the Alpha Zone. Lastly, Contact announced on February 23, 2021 drilling at the Charlie zone returned 2.34 g/t gold over 33 metres. On March 9, 2021 , Contact announced the start of the 2021 drill program at Green Springs.