(All dollar amounts are in Canadian dollars unless otherwise indicated).
Vancouver, Canada: Metalla Royalty & Streaming Ltd. (“Metalla” or the “Company”)
(TSXV: MTA) (NYSE American: MTA) announces its operating and financial results for the year ended May 31, 2020. Metalla has also filed with the U.S. Securities and Exchange Commission (the “SEC”) its SEC Annual Report on Form 40-F for the year ended May 31, 2020. The Form 40-F includes the Company’s Annual Information Form, audited financial statements and management’s discussion & analysis for the year ended May 31, 2020.
For complete details of the consolidated financial statements and accompanying
management's discussion and analysis for the year ended May 31, 2020, please see the Company's filings on SEDAR (www.sedar.com) or on EDGAR (www.sec.gov).
Shareholders are encouraged to visit the Company's website at
http://www.metallaroyalty.com/.
Metalla shareholders may receive a hard copy of the Company’s complete audited
financial statements for the year ended May 31, 2020, free of charge, upon request. For further information please visit the Company website at
https://www.metallaroyalty.com/financial-reports/.
Brett Heath, President and CEO of Metalla commented, "2020 represented another major year of growth for Metalla's royalty portfolio and corporately with the NYSE listing. We feel confident that our portfolio has reached critical mass and will provide the Company the platform to continue to scale our business, and shareholders an excellent way to participate in the gold and silver bull market. We are excited about the new opportunities in front of us and to see many of our assets having exploration success while being advanced toward production by our first-class counterparties."

FINANCIAL HIGHLIGHTS
During the year ended May 31, 2020, and the subsequent period, the Company:
• increased the number of royalties and streams held to a total of 50 precious metal assets through the following notable transactions:
o acquired a 2.0% NSR royalty on future gold production from a portion of the
La Fortuna deposit (the “Cantarito Claim”) and prospective exploration
grounds forming part of the NuevaUnión project located in the Huasco
Province in the Atacama region of Chile. The NuevaUnión project is jointly
owned by Newmont Corporation (“Newmont”) and Teck Resources Limited
(“Teck”), and is one of the largest undeveloped copper-gold-molybdenum
projects in the world;
- consolidated its ownership on St. Barbara Ltd.’s (“St. Barbara”) Fifteen Mile
Stream Gold Project (“FMS”) through the acquisition of a 3.0% net smelter
royalty on the Plenty deposit and Seloam Brook prospect for $2.0 million of
which $0.5 million in cash was paid upfront;
- acquired 100% of the issued and outstanding shares of Idaho Resources
Corporation (“IRC”) for US$2.0 million in cash and 357,121 common shares.
IRC holds a 0.5% GOR on Nevada Gold Mine’s (“NGM”) Anglo/Zeke claim
block in Nevada, which is located on trend to the southeast of the Cortez
Operations and Goldrush project. NGM is a joint venture between Barrick
Gold Corporation (“Barrick”) (61.5%) and Newmont (38.5%). IRC also holds a
1.5% GOR covering NuLegacy Gold Corporation’s (“NuLegacy”) Red Hill
project in Eureka County, Nevada, which is contiguous to the southeast of
the Anglo/Zeke claims. IRC also holds reversionary rights to mineral claims
encompassing all of the NGM’s Cortez operations;
- acquired a net 1.0% NSR royalty on the operating Wharf mine (“Wharf”) in
South Dakota from third parties for total consideration of US$1.0 million in
cash and 899,201 common shares. Wharf is operated by Coeur Mining Inc.
(“Coeur”); and
- entered into an agreement with NuEnergy Gas Limited (“NuEnergy”) to
acquire an existing 2.5% NSR royalty on the northern and southern portions
of Kirkland Lake Gold Ltd.’s (“Kirkland Lake”) operating Fosterville mine
(“Fosterville”) in Queensland, Australia, for a total consideration of AUD$2.0
million in cash and 467,730 common shares. The transaction is expected to
close in October 2020.

• recognized revenue on 178,624 (2019 – 431,844) attributable silver ounces (“oz.”)
at an average realized price of US$17.24 (2019 - US$15.33) and average cash cost
of US$6.58 (2019 - US$6.27) per oz. (see non-IFRS Financial Measures);
• generated operating cash margin of US$10.66 (2019 - US$9.06) per attributable
silver oz. from the Endeavor silver stream, New Luika Gold Mine (“NLGM”) stream
held by Silverback Ltd. (“Silverback”), and other royalty interests (see non-IFRS Financial Measures);
• recognized revenue from royalty and stream interests of $3.6 million (2019 - $7.9 million), net loss of $5.8 million (2019 - $2.4 million), and adjusted EBITDA of negative $1.9 million (2019 - positive $2.1 million) (see non-IFRS Financial Measures);
• paid $1.6 million in dividends during the year ended May 31, 2020 (2019 - $1.8
million). No dividends have been paid or declared for the months of June to August due to the impact of COVID-19;
• completed the secondary listing of its common shares on the NYSE and
concurrently completed a consolidation of its common shares on the basis of one
new share for four old shares (1:4). All shares and per share information has been restated on a retroactive basis to give effect to the share consolidation;
• Coeur completed a secondary public offering of 3,910,000 common shares of the
Company previously held by it, at a price of US$5.30 per common share for gross
proceeds of US$20.7 million (the “Secondary Offering”). The net proceeds of the
Secondary Offering were paid directly to Coeur. On June 30, 2020, following the
close of the Secondary Offering and the Wharf transaction, Coeur’s ownership of
the Company’s common shares decreased from 14.9% to 2.5%; and
• in August 2019, drew down the initial advance of $7.0 million on its $12.0 million convertible loan facility with Beedie Capital (“Beedie”) and repaid all other loans payable which had an aggregate principal balance of US$2.0 million; in August 2020, the Company amended the convertible loan facility with Beedie whereby Beedie will convert $6.0 million of the $7.0 million initial advance, the Company will drawdown the remaining $5.0 million from the original loan facility with the conversion repriced from $5.56 to $9.90 and Beedie would make an additional $20.0 million available to the Company to fund future acquisitions. On August 6, 2020, Beedie converted $6.0 million at $5.56 per share for a total of 1,079,136 shares and the company drew down the remaining $5.0 million with a revised conversion price of $9.90 from the original loan facility.

ASSET UPDATES

COSE & Joaquin Royalties
Metalla received its first royalty payments on Cap-Oeste Sur East (“COSE”) and Joaquin for production in fiscal 2020. Revenue totaled $90,273 and was related to mainly development ore shipped to the Manantial Espejo plant. Both mines were scheduled to ramp up to commercial production during the first two calendar quarters of 2020 but have been delayed due to COVID-19 mandatory shut down of operations by the Argentina government.
On April 2, 2020, a new decree was issued by the government of Argentina to expand the list of exemptions that will include mining production as essential for the Argentine economy. Although mining production is now permitted again, Pan American Silver
Corp. (“Pan American”) has kept the operations running at a reduced rate for the first half of the calendar year 2020. The impact of these suspensions on mining production levels and resulting cash flow to Metalla is difficult to predict.
Pan American later reported by news release on August 5, 2020, operations at Pan
American’s COSE & Joaquin mine resumed on May 4, 2020, with high-grade ore being
stockpiled on-site. Pan American expects to begin hauling mined ores from COSE and Joaquin to the processing plant in the third quarter of 2020.
Metalla holds an NSR royalty of 1.5% and 2.0% on COSE and Joaquin mines, respectively.

New Luika Silver Stream
Shanta Gold Limited (“Shanta”) disclosed in their news release on January 16, 2020 that their annual production for 2019 totaled 84.5 thousand oz. of gold, ahead of their guidance of 80-84 thousand oz. for the year at the New Luika Gold Mine (“NLGM”) located in Tanzania. Shanta also announced that it added 135 thousand oz. of gold reserves to the current mine plan during the year, net of depletion.
For 2020, Shanta has disclosed guidance of 80-85 thousand Au oz. and a 65% increase in its exploration budget to US$5 million over 2019. Shanta has reported its first net cash position in its 2020 second quarter financial statement, completing a period of deleveraging.
Metalla holds a 15% interest in Silverback Ltd. whose sole business is receipt and mdistribution of a silver stream on NLGM at an ongoing cost of 10% of the spot silver price.

Endeavor Mine Silver Stream
After decades of successful operation, the operator of the Endeavor Mine, located in Cobar, Australia, CBH Resources Limited (“CBH”) suspended mining operations at the Endeavor Mine in December 2019 and placed it into care and maintenance. The current focus for a potential future resumption of mining is the recent discovery of the Deep Zinc Lode at depth and a potential open pit scenario that was originally outlined in a historic
study completed in 2007.
Metalla has the right to buy 100% of the silver production up to 20 million ounces (12.6 million ounces remaining under the contract for delivery) from the Endeavor Mine for an operating cost contribution of US$1.00 per ounce of payable silver, indexed annually for
inflation, plus a further increment of 50% of the silver price in excess of US$7.00 per oz.

Santa Gertrudis
The Santa Gertrudis gold property of Agnico Eagle Mines Limited (“Agnico”) is located approximately 180 kilometres north of Hermosillo in Sonora, Mexico. During the first half of 2020, Agnico continued their US$10.4 Million drill program at Santa Gertrudis with a focus on expanding and testing new targets. In a press release dated July 29, 2020, Agnico announced further expansion of the Amelia deposit, effectively expanding the potential high-grade resource base, and the extension of oxide mineralization at both the Trinidad
Trend and Toro Zone. At Amelia, drilling intersected high-grade gold structures below the current underground resource including 6.1 g/t gold and 122 g/t silver over 6.3 metres and 1.9 g/t gold and 5 g/t silver over 10.2 metres. At Espiritu Santo drilling continued to intersect high-grade gold and silver mineralization with notable intercepts of 1.5 g/t gold and 2 g/t silver over 3.7 metres and 2.7 g/t gold and 321 g/t silver (uncapped silver value
of 1,101 g/t) over 3.3 metres. Drilling at the El Toro trend tested targets in the upper oxide portions of historical opens pits which will be amenable to heap-leach processing, intersecting 1 g/t gold and 1 g/t silver over 21.3 metres and 2.8 g/t gold and 2 g/t silver over 9.5 metres.
In a press release dated April 30, 2020, Agnico announced it had intersected high-grade gold at Amelia demonstrating the deposit remains open along strike and depth with hole 308 intersecting five high-grade structural commonly found at the bottom of the resource: 3.7 g/t gold over 6 metres, 3.3 g/t gold over 13 metres and 5.3 g/t gold over 10 metres. Beneath the underground resource, three step-out holes intersected high-grade gold of 3.1 g/t over 3.5 metres, 2.8 g/t over 22.5 metres and 3.5g/t over 4 metres, demonstrating the possibility to expand the resource base.
At the Espiritu Santo deposit, drilling demonstrated that shallow gold and silver mineralization continues to the south west of the deposit with high grade intercepts such as 3.7 g/t gold and 424 g/t silver over 3 metres and 3.5 g/t gold and 7 g/t silver over 11.5 metres.

On February 13, 2020, Agnico released an updated resource estimate at Santa Gertrudis with its first indicated resource of 104,000 ounces (5.1 million tonnes at 0.64 g/t gold) and an inferred resource of 1.2 million ounces (22.1 million tonnes at 1.64 g/t gold). The resource estimate did not encompass its post-Q4 2019 drilling that extended mineralization along strike, depth and the new discovery at Espiritu Santo.
Through the success of drilling in 2019, Agnico declared an initial inferred resource estimate of 521,000 ounces of gold at Amelia. Agnico expects the year resource estimate for Amelia to increase substantially and to declare the initial resource estimate of Espiritu Santo by year-end 2020.
Agnico’s disclosure on its website states that it believes the Santa Gertrudis project has the potential to be a similar size operation to La India which produced over 82Koz of gold in 2019 and is currently evaluating plans to incorporate a heap leach operation for the low-grade ore and a mill for the high-grade underground ore.
Metalla holds a 2.0% NSR on the Santa Gertrudis property.

Fifteen Mile Stream
Fifteen Mile Stream (FMS) is part of St. Barbara Limited’s Atlantic Gold Operation and is anticipated to be developed to provide ore to the 2.0 million tonne per year processing facility currently operated by St. Barbara. St. Barbara disclosed in their news release on July 29, 2020, that the Federal Environmental Impact Statement was being revised based on comments received. First Nations consultations and scientific studies are progressing
well with another submission anticipated in September 2020. Updates to the reserves and resources are expected on August 24, 2020.
St. Barbara disclosed in their news release on January 22, 2020, they continue to have exploration success at FMS as it continues to enlarge the planned reserve pits and delineate potential satellite pits along trend. At Seloam Brook, 700 metres west of the Plenty deposit, significant mineralization was intercepted suggesting the potential to be a pit extension of the main Fifteen Mile Stream proposed pits. Notable near surface highlights include 1.19 g/t over 6 metres and 2.85 g/t over 3 metres.

see & read more on
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