Metalla Royalty acquires royalty on one of the largest undeveloped gold projects in Brazil
(Kitco News) - Metalla Royalty & Streaming (NYSE American: MTA) (TSXV: MTA) announced Tuesday that it has entered into a purchase and sale agreement to acquire an existing 1-2% net smelter return royalty on OZ Minerals’ CentroGold project (Brazil) from Jaguar Mining.
CentroGold is located in the Gurupi geological province in the state of Maranhão, between the Carajas mining district and the Atlantic coast. It is one of the largest undeveloped gold projects in Brazil operated by OZ Minerals with three main open pit deposits: Blanket, Contact, and Chega Tudo.
OZ Minerals expects to complete an updated Feasibility Study on the project over the next two years and production expected to begin in 2024.
Metalla said that the purchase price includes an upfront payment of $7 million in cash payable by Metalla at closing and up to $11 million in contingent post-closing payments, consisting of common shares of Metalla and cash upon the achievement of certain milestones relating to CentroGold.
President and CEO Brett Heath commented, "We are pleased to acquire another accretive royalty on a large development project that covers over 2 million ounces of gold. The CentroGold project has a highly prospective land package that covers over 1,200 square kilometers within a proven geological gold belt in northern Brazil. The CentroGold project is being advanced by Australian based major producer OZ Minerals with a significant presence in Brazil operating the Pedra Branca and Antas mine. We believe the CentroGold project has a strong potential for growth with significant exploration upside."