Metalla Royalty & Streaming Ltd. - Exhibit 99.1 - Filed by newsfilecorp.com
METALLA ANNOUNCES 2020 FIRST QUARTER RESULTS
(All dollar amounts are in Canadian dollars unless otherwise
indicated)
FOR IMMEDIATE RELEASE
TSXV: MTA
October 24, 2019
OTCQB: MTAFF
Vancouver, Canada: Metalla Royalty & Streaming Ltd.(Metalla or the Company) (TSXV: MTA) (OTCQB: MTAFF)
announces its operating and financial results for the first quarter ended August
31, 2019. For complete details of the consolidated financial statements and
accompanying management's discussion and analysis for the quarter ended August
31, 2019, 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/.
In fiscal Q1, we added a key royalty on Fifteen Mile Stream
(FMS) that expands our coverage over the entire project with additional ground
along strike to the southwest of the resource base, commented Brett Heath,
President and Chief Executive Officer of Metalla. Additionally, we already see
very positive drill results with the discovery at Seloam Brook, which is on the
newly acquired royalty claims. Further, confirmatory drill results at the 149
zone and between Hudson and Egerton continues to show the potential of
significant resource growth at FMS over the next year.
Production at Endeavor was in line with the revised
schedule from CBH Resources for the quarter, but concentrate shipments were
pushed into Q2 due to a planned bulk shipment in October which resulted in Q1
revenue from the mine to be realized in Q2. Exploration success at Agnico
Eagles Santa Gertrudis and El Realito deposits continue to expand the resource
base with further drilling and expected updated resource estimate in February
2020.
FINANCIAL HIGHLIGHTS
During the three months ended August 31, 2019, the Company:
consolidated its ownership on St. Barbara Ltd.s (St. Barbara) FMS
deposit through the acquisition of a 3.0% net smelter royalty on the Plenty
deposit and Seloam Brook prospect for $2,000,000, of which $500,000 was paid
upfront;
drew down the initial advance of $7,000,000 on its convertible loan
facility with Beedie Capital (Beedie);
repaid loans payable with an aggregate principal balance of US$2,000,000;
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had 116,359 (May 31, 2019 - 59,515) attributable silver oz. remaining at
end of Q1-2020, an increase of 56,844 oz. over the quarter (due to a planned
bulk shipment of concentrate scheduled for October 2019 from the Endeavor
mine, which resulted in no shipments during Q1-2020);
shipped an estimated 5,366 tonnes of concentrate at 621 g/t of silver
(approximately 107,221 attributable silver oz.) from the Endeavor mine
subsequently;
revenue at Endeavor for Q1 will be recognized in Q2 due to a planned bulk
shipment of concentrate (see above) which resulted in recognized revenue from
stream interest in Q1 of $160,298 (2018 - $3,900,301), loss from operations of
$1,199,419 (2018 - income of $1,121,445), net loss of $1,215,163 (2018 -
$312,031), and adjusted EBITDA of negative $590,666 (2018 - positive
$1,731,581) (see non-IFRS Financial Measures); and
recorded cash flow from operating activities, before net change in non-cash
working capital items, of $113,079 (2018 - $1,322,771), offset by $542,698
spent on acquisitions of net smelter royalty interests, resulting in positive
working capital of $7,082,614 (May 31, 2019 - $862,799).
UPDATES ON ROYALTIES AND STREAMS
Fifteen Mile Stream 1.0% and 3.0% NSRs
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St. Barbara disclosed by news release on October 21, 2019 that
it continued drilling at FMS, which was focused on expanding the resource base
to the east and west. Mineralization was extended west of the resource base
within the Seloam Brook prospect. Significant intercepts from five holes
included 6 m at 2.22 g/t gold and 4m at 9.73 g/t gold, assays are pending for
the remaining eight holes.
Drilling at the 149 deposit to the east of the resource base is
ongoing, with a plan of twelve diamond drill holes focused on resource
expansion. To date, assays are pending for drill holes on the 149 deposit, but
core logging has visually indicated that the target zones have been intercepted.
At the main resource base, eight exploration holes focused on the resource
expansion between the planned Hudson and Egerton-Maclean open pits. Assays are
pending however; initial visual inspection and core logging supports the
potential extension of gold mineralization approximately 100m northwest of the
Egerton-Maclean pit and 200m east of the Hudson pit.
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For more information please see St Barbara Limited press
release dated October 21, 2019and Q1 Report.
El Realito 2.0% NSR
On October 23, 2019, Agnico Eagle Mines Limited (Agnico
Eagle) reported by news release they continued to have exploration success
at El Realito which is part of operating La India mine. Drilling within the main
corridor confirmed that the mineralized structures are steeply dipping to the
northwest, suggesting the possibility of a lower strip ratio with increased
resources within the current pit design. Drilling within the main corridor
indicated the possibility of increasing mineral reserves below the current pit
plan with intercepts of 1.3 g/t gold and 4 g/t silver over 17.7 m and 3.1 g/t
gold and 20 g/t silver over 9.2 m.
To the southeast at the El Realito east corridor, the
structural continuity of the mineralization has been extended with significant
intercepts of 2.1 g/t gold and 17 g/t silver over 22.7 m and 2.8 g/t gold and 16
g/t silver over 8 m.
Agnico Eagle is currently undergoing an exploration program to
further test the extension of the mineralized system in order to expand the
mineral resources, which they expect will increase in the annual updated
resource estimate scheduled for February 2020. Located 1.5km east of the
operating North and La India zones, El Realito continues to have the potential
to extend the current mine life at La India.
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For more information please see Agnico Eagle press release date
October 23, 2019.
Santa Gertrudis 2.0% NSR
On October 23, 2019, Agnico Eagle reported by news release
continued exploration success at its Santa Gertrudis project, particularly at
Amelia where over 15,000m have been drilled at the end of the third quarter.
Drilling at the Amelia discovery continued to extend the deposit to the east.
Significant intercepts to the north of Amelia include 3.9 g/t gold over 3.5 m
and 5.9 g/t gold over 8.5 m, 70 metres to the northeast. The deepest hole to
date at Santa Gertrudis, intercepted 2.1g/t gold over 4 m at 439 m depth and 150
m to the northeast a hole intersected 6.4 g/t gold over 7 m. In the eastern
extension of the Amelia deposit, drilling continued to expand the resource
envelope with intercepts such as 9.6 g/t gold over 6 m, 5.8 g/t gold over 3.8 m
and 2.6 g/t gold over 8 m.
Further south of the Trinidad zone, the Toro zone was extended
to the northwest with holes intersecting 2.1 g/t gold over 6.5 m and 1.1 g/t
gold over 9 m. Agnico Eagle disclosed by news release that it believes that
Santa Gertrudis has the potential to eventually be a similar size operation to
La India.
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For more information please see Agnico Eagle press release date
October 23, 2019.
Endeavor 100% Silver Stream
Production at Endeavor for the quarter of 56,844 oz Ag was in
line with the revised schedule from CBH Resources (CBH), but
concentrate shipments were pushed into Q2 due to a planned bulk shipment in
October of an estimated 107,221 oz Ag which resulted in Q1 revenue from the mine
to be realized in Q2. CBH announced on July 17, 2019 that it will scale back
production from 25,000 to 17,000 tonnes per month and staff for the remainder of
calendar year 2019 while focusing on infill drilling of the new Deep Zinc Lode
Resource to better appraise its future viability. A production decision on the
Deep Zinc Lode is expected by the end of calendar year 2019 with the potential
to add 3 to 5 years of production. Metalla will continue to monitor production
at the Endeavor mine.
Metalla has the right to buy 100% of the silver production up
to 20.0 million ounces (7.2 million ounces have been delivered to date) from the
Endeavor Mine for an operating cost contribution of US$1.00 per ounce of payable
silver, indexed annually for inflation, and a further increment of 50% of the
amount by which silver price exceeds US$7.00 per ounce.
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Joaquin 2% and COSE 1.5% NSRs
Pan American Silver Corp. has disclosed they will report its
third quarter results on November 6, 2019. Metalla expects a production update
on both of its COSE and Joaquin royalties at that time.
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.
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.
For further information, please visit our website at
www.metallaroyalty.com.
Contact Information
METALLA ROYALTY & STREAMING LTD.
Brett Heath, President & CEO
Phone: 604-696-0741
Email: info@metallaroyalty.com
Kristina Pillon, Investor Relations
Phone: 604-908-1695
Email: kristina@metallaroyalty.com
Website: www.metallaroyalty.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSXV) accept
responsibility for the adequacy or accuracy of this release.
Non-IFRS Financial Measures
Certain marked information are alternative performance
measures and readers should refer to non-international financial reporting
standards (IFRS) financial measures in the Company's Management's Discussion
and Analysis for the three months ended August 31, 2019 as filed on SEDAR and on
EDGAR and as available on the Company's website for further details. Metalla has
included certain performance measures in this press release that do not have any
standardized meaning prescribed by IFRS including average cash cost per ounce of
attributable silver, average realized price per ounce of attributable silver,
and cash margin. Average cost per ounce of attributable silver is calculated by
dividing the cash cost of sales, plus applicable selling charges, by the
attributable ounces sold. In the precious metals mining industry, this is a
common performance measure but does not have any standardized meaning. The
Company believes that, in addition to conventional measures prepared in
accordance with IFRS, certain investors use this information to evaluate the
Company's performance and ability to generate cash flow. Cash margin is
calculated by subtracting the average cash cost per ounce of attributable silver
from the average realized price per ounce of attributable silver. The Company
presents cash margin as it believes that certain investors use this information
to evaluate the Company's performance in comparison to other companies in the
precious metals mining industry who present results on a similar basis. The
presentation of these non-IFRS measures is intended to provide additional
information and should not beconsidered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. Other companies may calculate
these non-IFRS measures differently.
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Technical and Third Party Information
Metalla has limited, if any, access to the properties on
which Metalla holds a royalty, stream or other interest. Metalla is dependent
on, (i) the operators of the mines or properties and their qualified persons to
provide technical or other information to Metalla, or (ii) on publicly available
information to prepare disclosure pertaining to properties and operations on the
mines or properties on which Metalla holds a royalty, stream or other interest,
and generally has limited or no ability to independently verify such
information. Although Metalla does not have any knowledge that such information
may not be accurate, there can be no assurance that such third-party information
is complete or accurate. Some information publicly reported by operators may
relate to a larger property than the area covered by Metallas royalty, stream
or other interest. Metallas royalty, stream or other interests often cover less
than 100% and sometimes only a portion of the publicly reported mineral
reserves, resources and production of a property.
The disclosure was prepared in accordance with Canadian
National Instrument 43-101 (NI 43-101), which differs significantly from the
current requirements of the U.S. Securities and Exchange Commission (the SEC)
set out in Industry Guide 7. Accordingly, such disclosure may not be comparable
to similar information made public by companies that report in accordance with
Industry Guide 7. In particular, this news release may refer to mineral
resources, measured mineral resources, indicated mineral resources or
inferred mineral resources. While these categories of mineralization are
recognized and required by Canadian securities laws, they are not recognized by
Industry Guide 7 and are not normally permitted to be disclosed in SEC filings
by U.S. companies that are subject to Industry Guide 7. U.S. investors are
cautioned not to assume that any part of a mineral resource, measured mineral
resource, indicated mineral resource, or inferred mineral resource will
ever be converted into a reserve. In addition, reserves reported by the
Company under Canadian standards may not qualify as reserves under Industry
Guide 7. Under Industry Guide 7, mineralization may not be classified as a
reserve unless the mineralization can be economically and legally extracted or
produced at the time the reserve determination is made. Accordingly,
information contained or referenced in this news release containing descriptions
of mineral deposits may not be comparable to similar information made public by
U.S. companies subject to the reporting and disclosure requirements of Industry
Guide 7.
Inferred mineral resources have a great amount of
uncertainty as to their existence and great uncertainty as to their economic and
legal feasibility. It cannot be assumed that all or any part of an inferred
mineral resource will ever be upgraded to a higher category. Further, while NI
43-101 permits companies to disclose economic projections contained in
preliminary economic assessments and pre-feasibility studies, which are not
based on "reserves", U.S. companies have not generally been permitted under
Industry Guide 7 to disclose economic projections for a mineral property in
their SEC filings prior to the establishment of "reserves. Disclosure of
contained ounces in a resource is permitted disclosure under Canadian
reporting standards; however, Industry Guide 7 normally only permits issuers to
report mineralization that does not constitute reserves by Industry Guide 7
standards as in-place tonnage and grade without reference to unit measures.
Historical results or feasibility models presented herein are not guarantees or
expectations of future performance.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking information
and forward-looking statements within the meaning of applicable Canadian and
U.S. securities legislation. The forward-looking statements herein are made as
of the date of this press release only, and the Company does not assume any
obligation to update or revise them to reflect new information, estimates or
opinions, future events or results or otherwise, except as required by
applicable law. Often, but not always, forward-looking statements can be
identified by the use of words such as "plans", "expects", "is expected",
"budgets", "scheduled", "estimates", "forecasts", predicts, projects,
intends, targets, aims, anticipates or believes or variations
(including negative variations) of such words and phrases or may be identified
by statements to the effect that certain actions may, could, should,
would, might or will be taken, occur or be achieved. Forward-looking
information in this press release includes, but is not limited to, statements
with respect to future events or future performance of Metalla, disclosure
regarding the precious metal purchase agreements and royalty payments to be paid
to Metalla by property owners or operators of mining projects pursuant to net
smelter returns and other royalty agreements of Metalla, continued ramp-up at
the Endeavor Mine, management's expectations regarding Metalla's growth, results
of operations, estimated future revenues, potential expansion of reserves and
mineralization carrying value of assets, future dividends, and requirements for
additional capital, production estimates, production costs and revenue, future
demand for and prices of commodities, expected mining sequences, business
prospects, and opportunities. Such forward-looking statements reflect
management's current beliefs and are based on information currently available to
management.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors, which may cause the actual results, performance
or achievements of the Company to be materially different from any future
results, performance, or achievements expressed or implied by the
forward-looking statements. The forward-looking statements contained in this
press release are based on reasonable assumptions that have been made by
management as at the date of such information and is subject to unknown risks,
uncertainties and other factors that may cause the actual actions, events or
results to be materially different from those expressed or implied by such
forward-looking information, including, without limitation: the impact of
general business andeconomic conditions; the ongoing operation of the properties
in which the Company holds a royalty, stream, or other production-based interest
by the owners or operators of such properties in a manner consistent with past
practice; absence of control over mining operations; the accuracy of public
statements and disclosures made by the owners or operators of such underlying
properties; no material adverse change in the market price of the commodities
that underlie the asset portfolio; and other risks and uncertainties disclosed
under the heading Risk Factors in the Management's Discussion and Analysis and
the Annual Information Form of the Company both dated September 26, 2019 and
filed with the Canadian securities regulatory authorities on the SEDAR website
at www.sedar.comand with the SEC on the EDGAR
website at https://www.sec.gov/.
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Although Metalla has attempted to identify important factors
that could cause actual actions, events or results to differ materially from
those contained in forward-looking information, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that such information will prove to be
accurate, as actual results and future events could differ materially from those
anticipated in such information. Investors are cautioned that forward-looking
statements are not guarantees of future performance. The Company cannot assure
investors that actual results will be consistent with these forward-looking
statements. Accordingly, investors should not place undue reliance on
forward-looking statements or information.
Readers are cautioned that forward-looking statements are
not guarantees of future performance. All of the forward-looking statements made
in this press release are qualified by these cautionary statements.
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