Metalla Royalty Acquires Royalty At IAMGOLD Cote Gold Project
Metalla Royalty & Streaming (TSXV: MTA) this morning announced that it has acquired another net smelter return royalty. The latest royalty to be added to the firms portfolio is related to IAMGOLD Corp’s (TSX: IMG) Cote Gold Project, as well as the Gosselin project, the latter of which is partially owned by Sumitomo Metal Mining Co.
The royalty itself consists of a 1.35% NSR that is applicable to a portion of the Cote Gold Project, and all of the Gosselin gold project. The Cote project is expected to begin producing in the near term, and is expected to be one of the largest gold mines within Canada. Commercial production is anticipated to begin in the second half of 2023. The NSR applies to a portion of the northern and north-eastern portion of the pit.
The Gosselin NSR meanwhile is a bet on the Gosselin Zone, which is expected to have three to five million ounces of gold, just 1.5 kilometres north of the Cote deposit. The zone is expected to enhance production at Cote in the future.
Total consideration for the royalty amounted to $7.5 million paid in cash. The transaction was funded by an ongoing at-the-market financing, which has raised gross proceeds of US$5.1 million, enabling the transaction to be fully funded.
Metalla Royalty & Streaming last traded at $12.60 on the TSX Venture.
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