Metalla Royalty & Streaming Ltd. (NYSE American: MTA) (TSX-V: MTA) is pleased to announce it has entered into a Royalty Purchase Agreement to acquire an existing 5% net smelter return royalty from an arm’s length seller on the South Domes portion of the Castle Mountain Gold mine owned by Equinox Gold Corp. (NYSE: EQX) (TSX: EQX) for a total consideration of $15 million in cash.

Brett Heath, President & CEO of Metalla, commented, “The Castle Mountain royalty provides Metalla shareholders with exceptional long-term exposure to a significant property operated by one of the industry’s premier operators. The 5% NSR covers the South Domes portion of the producing Castle Mountain Gold Mine, soon to be one of the USA’s largest gold mines when the phase 2 expansion is implemented. Metalla shareholders will gain a meaningful 5% NSR on reserves and resources of nearly 2 million ounces of gold on a mine expected to produce in excess of 200 Koz annually.”

CASTLE MOUNTAIN (5% NSR)^{(1)(2)(3)(4)(8)}

Castle Mountain is an operating heap leach and mill gold mine located in California, USA north of Equinox’s Mesquite mine. Castle Mountain is being developed by Equinox in two stages, Phase 1 and Phase 2. Phase 1 is currently operating at the JSLA, Jumbo and Oro Belle pits with an expected production of 30-40Koz of gold annually. Phase 2, which is expected to begin in 2026 and includes South Domes, is projected to expand production to more than 200koz of gold annually. Castle Mountain is poised to become one of the USA’s largest gold mines with an expected annual output of 218Koz and total all-in sustaining cost of $858/oz over the 14-year Phase 2 mine plan. Castle Mountain currently boasts 4.2Moz of gold reserves, of which South Domes covers 1.1Moz gold reserves. Equinox has outlined the potential to expand the 2021 Feasibility Mineral Reserve pits to ultimately connect the JSLA and South Domes pits.

The NSR covers all of the South Domes mineralization at the Castle Mountain operation.

SOUTH DOMES RESERVE & RESOURCE ESTIMATE ^{(1)(2)(4)(5)(6)(7)}

CASTLE MOUNTAIN RESERVE & RESOURCE ESTIMATE ^{(1)(2)(4)(5)(6)}

TRANSACTION STRUCTURE

The consideration paid by the Company in the transaction will be comprised of an initial upfront payment of $10 million in cash at closing, with the remaining $5 million to be paid within twenty months from the closing date bearing interest at a rate of 4% per annum from the closing date. Closing of the transaction is subject to customary closing conditions.

FINANCIAL UPDATE

The Company is also pleased to announce that it will drawdown an additional C$3 million under its existing amended and restated convertible loan facility with Beedie Capital, the terms of which are disclosed in the Company’s news release dated July 29, 2020. This Drawdown will increase the total amount drawn under the Convertible Loan Facility to C$8 million with an additional C$12 million remaining available to the Company. The Drawdown is subject to the acceptance of the TSX Venture Exchange.

The Company is also pleased to provide an update on its at-the-market equity program (announced on May 14, 2021. As of the date of this news release, Metalla has sold 1,287,701 Common Shares under the 2021 ATM Program for gross proceeds of $11.4 million. As a result of these proceeds, the Company is fully funded to make the $10 million closing payment for the royalty acquisition on Castle Mountain.

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.

Castle Mountain Royalty Map (8) (CNW Group/Metalla Royalty and Streaming Ltd.)