Canadian precious metals royalty and streaming company Metalla Royalty & Streaming Ltd. announced that it has closed its previously announced acquisition of a 2 percent net smelter return royalty on the Santa Gertrudis gold property located north of Hermosillo in Sonora, Mexico from mining company GoGold Resources Inc. for $12 million.
Metalla said that the royalty on Santa Gertrudis will represent a long life and low-cost mine on an expansive land package that will translate into a future cornerstone asset in the Metalla royalty portfolio.
GoGold elected to accept $6 million of the purchase price by being issued common shares of Metalla at a deemed price of $0.78 per Metalla share. The share consideration represents a total of 10.1 million Metalla shares with a pro forma interest of 9.9 percent.
Metalla has also entered into loan agreements with a syndicate of arm's length lenders for aggregate loan proceeds of $1.7 million. The proceeds from the loan were used to pay, in part, the $6 million cash portion of the acquisition price for the royalty.