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Metalla Up 1.3% In US After Hours As Provides Updates on Its Royalty Portfolio

4:57 PM ET 05/28/2025 - MT Newswires

At Cote and Gosselin -- with Metalla holding a 1.35% net smelter return (NSR) royalty covering all of IAMGOLD's (IMG.TO) Gosselin deposit and the northern portion of the Cote mine in Ontario, Canada -- Metalla noted Franco-Nevada (FNV.TO) announced its US$1.05 billion acquisition of a 7.5% gross margin royalty. Franco-Nevada expects mill capacity to reach 13 million tonnes per year (Mtpa) by year-end, with potential to expand to 20 Mtpa.

At the Endeavor Mine in Cobar, Australia, Metalla holds a 4% NSR royalty. Operator Polymetals Resources remains "on schedule and on budget" to begin processing ore in the coming weeks, with first cash flow expected in June and high-grade silver production beginning in July. The mine aims to reach a processing rate of 65,000 tonnes per month in the second half of 2025.

In Santa Cruz, Argentina, Metalla holds a 2% NSR royalty on Unico Silver's Joaquin Project. Recent drilling at the La Negra deposit confirmed strong silver mineralization. Unico will continue drilling to support a maiden JORC Mineral Resource estimate.

"We are encouraged by Franco-Nevada's strong vote of confidence in Cote and Gosselin as demonstrated by their commitment of over $1 billion. The acquisition marks one of the largest investments in their history and we believe one of the most significant royalty transactions," said Brett Heath, Chief Executive Officer of Metalla.

"Franco-Nevada highlighted the quality of IAMGOLD's work, stating that following detailed due diligence, it believes Cote to be an excellent new operation with an extensive Resource endowment that has high potential to continue expanding. We believe the Gosselin zone, where Metalla holds a 1.35% NSR royalty covering the entire deposit, will drive most of that future expansion and that this transaction should materially enhance market recognition of the value of our royalty interest."