Metalla buys First Majestic Silver royalty portfolio

Self-styled royalty consolidator Metalla Royalty & Streaming (TSXV: MYA; NYSE-AM: MTA) has signed a deal to acquire a portfolio of eight precious metals royalties from First Majestic Silver (TSX: FR; NYSE: AG) in exchange for US$20 million in Metalla scrip.

The deal will add about 7 million silver-equivalent ounces at about US$2.90 per oz. on royalties covering an underlying 343 million oz. of metal to Metalla’s holdings.

The Vancouver-based company said that once closed, First Majestic will hold about 8.5% of its outstanding shares, subject to a four-month holding period, and become a cornerstone shareholder.

The acquired portfolio includes one producing gold royalty on First Majestic’s La Encantada gold operation, four development silver royalties (Del Toro, La Guitarra, San Martin, La Parrilla), and three advanced exploration silver royalties (Plomosas, La Joya, La Luz) — all on assets in Mexico.

Critically, Metalla said in a news release the royalties cover 100% of all the concessions on the eight properties, with significant exploration upside covering 1,750 sq. km of ground.