(Kitco News) - First Majestic Silver (NYSE: AG; TSX: FR) announced today that it has entered into a royalty purchase agreement dated November 25, 2022 to sell a portfolio of its royalty interests to Metalla Royalty & Streaming for a total consideration of US$20.0 million in common shares of Metalla.
The company said that the total consideration consists of 4,168,056 Metalla shares at a deemed price of US$4.7984 per share based on a 25-day volume-weighted average price on the NYSE American Exchange having an aggregate value of approximately US$20.0 million.
Once closed, First Majestic will hold approximately 8.5% of the outstanding shares in Metalla, which will be subject to a statutory holding period of four months and one day following the date of closing and certain contractual resale restrictions, it added.
In its press release, Metalla noted that the portfolio comprises of a total of eight royalties, including one producing gold royalty (La Encantada), four development silver royalties (Del Toro, La Guitarra, San Martin, La Parrilla), and three advanced exploration silver royalties (Plomosas, La Joya, La Luz).
Importantly, Metalla said that the royalties cover 100% of all the concessions on the eight properties.
First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The company presently owns and operates the San Dimas silver/gold mine, the Jerritt Canyon gold mine, the Santa Elena silver/gold mine and the La Encantada silver mine.
Metalla is a precious metals royalty and streaming company. The company indicated that it strives to become one of the leading gold and silver companies for the next commodities cycle.
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