NYSE- and TSX-V-listed Metalla Royalty & Streaming has entered into a royalty purchase agreement to acquire royalties on metals extracted from gold major Barrick Gold’s Lama gold project, in Argentina, for $7.5-million.
Metalla would acquire an existing 2.5% to 3.75% gross value return royalty on gold and silver, and a 0.25% to 3.0% net smelter return royalty on copper and other non-precious minerals, extracted from the Lama gold project, owned by Barrick Gold.
"The Lama project is part of one of the largest gold deposits in the world currently being contemplated by Barrick as a standalone operation. Our royalty will provide Metalla shareholders with outstanding exposure to one of the most significant geological gold bearing trends with a substantial amount of near-term growth, exploration upside, and first in class operator,” said president and CEO Brett Heath.
He continued that Metalla was excited by the $75-million being spent by Barrick on defining resources on the Lama extensions most of which is covered by the royalty area.
“This has resulted in some exciting drill results with a new discovery of a gold/copper porphyry style mineralization at depth. Barrick has initiated a study to evaluate the development of a standalone operation at Lama, on the Argentinean side, expected to be completed in the second quarter of 2023, and provide a development decision for the Lama project in 2024."