Metalla Royalty acquires royalty interest on construction ready Eldorado Gold's Tocantinzinho project in Brazil
(Kitco News) - Metalla Royalty & Streaming (NYSE American: MTA) (TSXV: MTA) announced today that it has entered into a royalty transfer agreement with Sailfish Royalty (TSXV: FISH) to acquire an existing 0.75% gross value royalty interest on gold produced and sold from Eldorado Gold’s (NYSE: EGO) (TSX: ELD) Tocantinzinho project, located in northern Brazil for a total consideration of $9 million in cash.
Tocantinzinho is a permitted, high-grade open pit gold deposit in the Tapajos district in Para state, Brazil operated by Eldorado Gold that has an expected mine life of 10 years with an estimated annual gold production of 170Koz at a $580 per ounce cash cost.
The Tocantinzinho deposit is open at depth with no drilling deeper than 400 metres and the large underexplored land package presents a great deal of additional exploration potential that may yield satellite mineralized bodies. Notably, northwest of the deposit is the Santa Patricia Cu-Mo porphyry prospect which is inferred to be a potential porphyry system at depth.
The royalty property covers the full extent of the Tocantinzinho project with 28,275 hectares of the land package surrounding the deposit. The agreement is subject to customary closing conditions and the transaction is expected to close by March 19, 2021.
Brett Heath, President & CEO of Metalla commented, “We are pleased to acquire another accretive royalty on a fully permitted, construction ready development project that covers over 2 million ounces of gold. Tocantinzinho is a large open pit project currently owned by Eldorado Gold that we believe has a clear path to production over the near term with exploration upside on its 280 square kilometer land package.”