The Fly

Metalla to acquire royalty portfolio from First Majestic for $20M

Metalla Royalty & Streaming (MTA) announces that on November 26, 2022 it signed a royalty purchase agreement with First Majestic Silver (AG), pursuant to which Metalla will acquire eight royalties for $20M of common shares of Metalla. First Majestic holds and will originate a portfolio of royalties in Mexico. Transaction Highlights: The addition of the producing La Encantada gold royalty will provide immediate cash flow to Metalla; The portfolio adds four near term silver development royalties, most of which are fully permitted, have existing infrastructure and mine development; The combined land package covers more than 175,000 hectares across some of the most prolific silver camps in Mexico; The addition of eight royalties from First Majestic will expand Metalla’s portfolio to 79 royalties and streams; Counterparties include First Majestic, Sierra Madre Gold and Silver, GR Silver Mining and Silver Dollar Resources ; The royalty portfolio is predominantly silver and will add approximately 1.7Moz of attributable silver in the measured and indicated categories, and 5.2Moz of attributable silver in the inferred category to Metalla9. Brett Heath, President, and CEO of Metalla, commented, "This transaction marks another important milestone in our continued growth at Metalla. It provides shareholders with eight new royalties that have a significant amount of exposure and leverage to silver. It adds immediate cash flow from one producing royalty, bolsters our near-term development pipeline with four development royalties, and three advanced exploration royalties. It also adds a significant amount of exploration upside with over 175,000 hectares of royalty coverage across the most prolific silver trends in Mexico." The aggregate consideration payable by Metalla for the purchase of the royalties will be satisfied by Metalla issuing $20 million of common shares based on the 25-day volume-weighted average price of shares traded on the NYSE American prior to this announcement at a price of US$4.7984 to be issued upon closing. The Transaction is subject to customary closing conditions and exchange approvals and is expected to close in Q1 2023.

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