Metalla Royalty & Streaming Ltd increases the credit facility to over $ 32 million to fund future acquisitions

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The original $ 12 million loan facility came from shareholder Beedie Capital, who said it looks forward to helping accelerate and grow the licensing company’s business

(NYSEAMERICAN: MTA) () increases its loan facility to over $ 32 million to fund the acquisition of new royalties and streams.

The original $ 12 million loan facility came from shareholder Beedie Capital, who said in a statement that it looks forward to helping accelerate and grow the licensing company’s business, according to managing director David Bell.

Beedie’s additional $ 20 million capital commitment increases the Vancouver-based licensing company’s convertible loan facility to over $ 32 million.

READ: Metalla Royalty & Streaming Adds New Royalty & Streaming to Kirkland Lake Gold’s Fosterville High Grade Gold Mine

Under the terms of the loan modification, Beedie has agreed to sell $ 6 million of the $ 7 million drawn under the original $ 12 million loan at a cost of C $ 5.56 per Metalla – Exchange shares under the conversion rights under the original loan facility. The remaining outstanding US $ 1 million must be converted according to the change.

Metalla will withdraw the remaining $ 5 million from the initial loan facility concurrently with the conversion and at a price of $ 9.90 per share, which is a 78% premium on the initial conversion price and a 27% premium on the 30-day volume-weighted average equates to price (VWAP) on the TSX Venture Exchange.

All future advances from the $ 20 million loan will be at least $ 2.5 million at a conversion price based on the 30-day VWAP on the day of the advance payment. If the 30-day VWAP has a premium of 50% above the conversion price, Metalla can convert the principal amount within the framework of the facility at the respective conversion prices.

The reduced standby fee for unused funds has been changed from 2.5% to an interest rate of 1.5% per annum, and the interest rate for all funds drawn remains at 8% per annum.

‘Repeatable and Scalable Strategy’

“We are very excited to develop our productive and mutually beneficial relationship with Beedie Capital as a cornerstone as we continue to grow our business,” Metallas CEO Brett Health said in the statement on Wednesday.

“Beedie Capital has been a very supportive shareholder in Metalla and we look forward to using our expanded and improved facility in future value-added royalties and streaming transactions.”

Beedie’s Bell added that the Metalla team “continues to pursue a repeatable and scalable strategy” to acquire royalties and streams in high-growth projects.

Earlier this week, Metalla completed the acquisition of a 2.5% net smelter income fee on the high-grade Fosterville gold mine from Kirkland Lake Gold in Australia, expanding its portfolio to 50 streams.

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

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