The portfolio comprises of a total of eight royalties, including one producing gold royalty, four development silver royalties, and three advanced exploration silver royalties



Metalla Royalty & Streaming Ltd. (“Metalla” or the “Company”) (TSXV: MTA) (NYSE American: MTA) is pleased to announce that on November 26, 2022 it signed a royalty purchase agreement with First Majestic Silver Corp. (“First Majestic”) (NYSE: AG) (TSX: FR), pursuant to which Metalla will acquire eight royalties for $20 million of common shares of Metalla (the “Transaction”). First Majestic holds and will originate a portfolio of royalties in Mexico as described below.

·        Immediate Cash Flow: The addition of the producing La Encantada gold royalty will provide immediate cash flow to Metalla.

·        Near Term Development: The portfolio adds four near term silver development royalties, most of which are fully permitted, have existing infrastructure and mine development for a lower capex and faster timeline to restart production.

·        Highly Prospective Properties: The combined land package covers more than 175,000 hectares across some of the most prolific silver camps in Mexico.

·        Accretive Growth and Increased Size and Scale: The addition of eight royalties from First Majestic will expand Metalla’s portfolio to 79 royalties and streams, increase cash flow, and significantly enhance Metalla’s industry leading development pipeline.

·        Counterparty Diversification: Counterparties include First Majestic, Sierra Madre Gold and Silver Ltd. (“Sierra Madre”), GR Silver Mining Ltd. (“GR Silver”) and Silver Dollar Resources Inc. (“Silver Dollar”).

·        Substantial Leverage to Silver: The royalty portfolio is predominantly silver and will add approximately 1.7Moz of attributable silver in the measured and indicated categories, and 5.2Moz of attributable silver in the inferred category to Metalla9.

·        Adds New Major Shareholder: We are excited to partner with First Majestic, one of the world’s leading silver producers with a market cap of ~$2.5 billion, which will become our largest shareholder at approximately 8.5%.

Brett Heath, President, and CEO of Metalla, commented, “This transaction marks another important milestone in our continued growth at Metalla. It provides shareholders with eight new royalties that have a significant amount of exposure and leverage to silver. It adds immediate cash flow from one producing royalty, bolsters our near-term development pipeline with four development royalties, and three advanced exploration royalties. It also adds a significant amount of exploration upside with over 175,000 hectares of royalty coverage across the most prolific silver trends in Mexico. We want to thank First Majestic for entrusting the Metalla team with unlocking additional value from their royalty assets and welcome them to our registry.”

Source: Company Press Release