Metalla Royalty & Streaming Ltd. (NYSE American: MTA) (TSX-V: MTA) is pleased to announce that it has entered into a purchase and sale agreement to acquire an existing 1-2% net smelter return royalty on OZ Minerals’ (ASX: OZL) CentroGold Project from Jaguar Mining (TSX: JAG). The purchase price includes an upfront payment of $7 million in cash payable by Metalla at closing and up to $11 million in contingent post-closing payments, consisting of common shares of Metalla and cash upon the achievement of certain milestones relating to CentroGold.

Brett Heath, President & CEO of Metalla commented, “We are pleased to acquire another accretive royalty on a large development project that covers over 2 million ounces of gold.⁽⁴⁾ The  CentroGold project has a highly prospective land package that covers over 1,200 square kilometers within a proven geological gold belt in northern Brazil. The CentroGold project is being advanced by Australian based major producer OZ Minerals with a significant presence in Brazil operating the Pedra Branca and Antas mine. We believe the CentroGold project has a strong potential for growth with significant exploration upside.”

CENTROGOLD PROJECT^(1)(2)(3)

CentroGold is located in the Gurupi geological province in the state of Maranhão, between the Carajas mining district and the Atlantic coast. It is one of the largest undeveloped gold projects in Brazil operated by OZ Minerals with three main open pit deposits: Blanket, Contact, and Chega Tudo. The recent Pre-Feasibility Study outlined a seven-year life of mine operation where production in the first two years is expected to average 190Koz to 210Koz gold annually and 145Koz to 165Koz ounces per year over the first six years with an expected ~1.1Moz of total production excluding Chega Tudo. OZ Minerals expects to complete an updated Feasibility Study on the project over the next two years with the potential addition of the Chega Tudo deposit and production expected to begin in 2024.

CentroGold Blanket & Contact Reserve & Resource Estimate ^{(1)(2)(3)(5)(6)(7)}

The CentroGold Contact and Blanket deposits remain open at depth and the expansive land package presents a great deal of exploration potential including eight identified targets that may yield complimentary satellite deposits. The current mine plan does not include the Chega Tudo deposit, approximately eight kilometers to the west of the Contact & Blanket deposits. Chega Tudo is the third near surface deposit which provides near-term potential to extend the mine plan or to expand the production profile at CentroGold. Recent work on the CentroGold project included progression of permitting and environmental licensing with regional exploration efforts focused on trenching and sampling the eight other known targets in the CentroGold land package, specifically Mandiocal and Sequeiro. In 2021, Oz Minerals expects to continue permitting and environmental licensing efforts and begin an expanded drill program on the CentroGold project and several exploration targets including an update to the Mineral Resource and Ore Reserve estimate.

CentroGold Chega Tudo Resource Estimate ^{(1)(2)(3)(4)(5)(6)(7)}

ROYALTY MAP⁽¹⁾ 

The royalty property covers the bulk of the CentroGold project with more than 120,000 hectares of the land package surrounding the deposits which includes several prospects.

TRANSACTION STRUCTURE

The Royalty is a 1% NSR on the first 500Koz of gold production, 2% NSR on the next 1Moz of gold production, and reverts to a 1% NSR royalty on gold production thereafter in perpetuity.

Metalla has agreed to acquire the Royalty from Jaguar for a total purchase price of up to $18 million upon achievement of two milestones relating to the CentroGold project. Metalla will satisfy the upfront payment of $7 million in cash upon closing.

The first milestone will be triggered upon grant of all project licenses, the lifting or extinguishment of the injunction imposed on the CentoGold project with no pending appeals and, if necessary, the completion of any and all community relocations. The first milestone payment will be satisfied by Metalla issuing common shares with a value of $7 million priced at the fifteen (15) trading day volume-weighted average price on the NYSE American on a date that is within 120 days following completion of the trigger.

The second milestone will be triggered upon the CentroGold project achieving commercial production and will be satisfied by Metalla through a $4 million payment in cash.

The transaction is subject to other customary closing conditions, including confirmatory due diligence. The transaction is expected to close in the first quarter of 2021.

QUALIFIED PERSON

The technical information contained in this news release has been reviewed and approved by Charles Beaudry, geologist M.Sc., member of the Association of Professional Geoscientists of Ontario and the Ordre des Géologues du Québec and a consultant to Metalla. Mr. Beaudry is a Qualified Person as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects.

ABOUT METALLA

Metalla was created for the purpose of providing shareholders with leveraged precious metal exposure by acquiring royalties and streams. Our goal is to increase share value by accumulating a diversified portfolio of royalties and streams with attractive returns. Our strong foundation of current and future cash-generating asset base, combined with an experienced team, gives Metalla a path to become one of the leading gold and silver companies for the next commodities cycle.