Metalla Royalty & Streaming Ltd. (TSX-V: MTA) (NYSE American: MTA) is pleased to announce that it has closed on a purchase and sale agreement with Nevada Gold Mines, LLC an entity formed by Barrick Gold Corporation and Newmont Corporation (NYSE: NEM), for the sale by Metalla of the JR mineral claims that make up the Pine Valley property which is part of the Cortez complex in Eureka County, Nevada, for $5 million in cash and Metalla will retain 3% NSR Royalty on the Property.

Brett Heath, President and CEO of Metalla, commented, “This transaction is a great example of the embedded optionality within our portfolio. With 85 assets, we firmly believe as the portfolio matures, shareholders will continue to see years of smart deals turn into big wins.” Mr. Heath continued, “We are excited to declare a special dividend allowing shareholders of record to take part in this exciting sale. Our philosophy on paying dividends remains the same in the long-term, aiming to pay out a portion of operating cash to shareholders as the Company’s finances allow. We will also use the remaining proceeds to reduce debt and make future royalty acquisitions.”

BACKGROUND ON THE TRANSACTION

On December 14, 2020, Metalla acquired two private companies – Genesis Gold Corporation and Geological Services Inc. – which together held a portfolio of eleven royalties, for $4.125 million in cash and common shares of the Company (see news release of the Company dated December 14, 2020). Pursuant to a Mining Lease agreement dated June 28, 2002, as amended, Genesis had leased the Property for a term of 20 years, which term was extended up to June 28, 2023. The Lease included annual advanced royalty payments of $100,000 per year and a 3% royalty on production.

Pursuant to the Transaction, Metalla has extinguished the Lease and sold the Property outright to Nevada Gold Mines for $5 million and the retention by Metalla of a 3% NSR royalty on the Property, which does not contain any buy-down or buy-back rights.

PINE VALLEY (3.0% NSR)^{(1), (2)}

The Property covers approximately 1,060 hectares of exploration land east and south of Nevada Gold Mines’ Goldrush deposit along the Battle Mountain-Eureka trend. Prior to the formation of Nevada Gold Mines, Barrick stated that the Goldrush deposit is a large Carlin-type gold development project, which will progress toward a steady-state production of ~450Koz of gold per annum during its first full five years of operation. Goldrush’s reserve estimate is currently 8.0 million ounces at 7.27 g/t gold, which is inclusive of measured and indicated resource estimate of 9.9 million ounces at 6.49 g/t gold and an inferred resource estimate of 4.5 million ounces at 5.9 g/t gold. Barrick stated that mineralization at Goldrush is open along strike towards the north and east where the Property continues with the favorable stratigraphic host of Goldrush and has identified a mineral potential area known as Goldrush South on the Anglo/Zeke and the Property. The Royalty complements and overlaps a portion of Metalla’s Cortez trend royalty land package that it acquired in May 2020.

SPECIAL DIVIDEND

Metalla is pleased to announce that its board of directors has approved and declared a special dividend payment on the common shares of the Company, in the amount of C$0.03 per Share in cash (subject to any applicable tax withholding obligations).

The table below sets out the Special Dividend record and payment dates for shareholders of record.

The Special Dividends in the above table are ‘Eligible Dividends’ pursuant to the Income Tax Act of Canada.

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. Mr. Beaudry has not done sufficient work to classify the historical estimates disclosed above as current mineral resources or mineral reserves, and the Company is not treating the historical estimates as current mineral resources or mineral reserves.

ABOUT METALLA

Metalla is a precious metals royalty and streaming company. Metalla provides shareholders with leveraged precious metal exposure through a diversified and growing portfolio of royalties and streams. 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.

Cortez Royalty Map (CNW Group/Metalla Royalty and Streaming Ltd.)