Alberta to introduce ‘modern’ coal policy, including ban on new open-pit projects
The new policy will not affect those qualified as "advanced coal projects" such as the controversial Grassy Mountain mine.
Alamos Gold (TSX: AGI; NYSE: AGI) will sell a portfolio of 18 royalties on assets not owned by Alamos to Metalla Royalty and Streaming (TSXV: MTA; MTAFF) for $8 million in Metalla shares.
The portfolio includes a 2% net smelter returns royalty (NSR) on Agnico Eagle Mine’s El Realito gold deposit, adjacent to its La India mine in Sonora, Mexico, plus 1.5% and 1% NSRs on Monarch Gold’s Wasamac gold project and Beaufor gold mine, both in Quebec. Most of the other royalties are on exploration stage projects.
Metalla will pay Alamos 8.23 million shares valued at $1.30 a-piece. Following the transaction, Alamos will own 6.26% of Metalla.
Concurrent with the royalty deal, Metalla secured a C$12 million convertible loan facility with Beedie Capital. Beedie will advance Metalla an initial C$7 million, with the remaining C$5 million available in minimum tranches of C$1.25 million.
In March 2019, Alamos received an operating permit from the Turkish Department of Energy and Natural Resources for the start of earthworks at the open pit area on its Kirazli gold project. The company expects to spend C$75 million in 2019 finishing Kirazli’s water reservoir and ramping up major construction activities. It expects to spend C$60 million continuing construction in 2020 and begin initial production by the end of that year.
Metalla acquired a 1% NSR on Atlantic Gold’s Fifteen Mile Stream gold project in Nova Scotia for C$4 million. Metalla paid the third party seller C$2.2 million in cash and issued it 2.6 million shares. The royalty covers all products recovered from the project.
(This article first appeared in The Northern Miner)
