There are a lot of eyes watching gold right now. A universe of traders—fundamental, technical and the like—are watching the malleable metal for any sign of strength.
One of the great Equity.Guru success stories over the last few years has been that of Metalla Royalty and Streaming (MTA.V), an outfit that came out of the gates making big promises to follow in the footsteps of the $16 billion Franco-Nevada (FNV.T), and has nailed every milestone in the time since.
Back in the olden days, when stocks were traded by men in pits yelling at each other about pork belly futures so old white men could win bets about homeless people (“Looking good, Billy Ray!”), companies aimed to make as much money as they could so they could pay dividends to their shareholders.
The following Epstein Research interview of Lawrence Roulston, newly appointed non-executive Chairman of Metalla Royalty & Streaming (MTA.C) was conducted by phone and email in the week ended November 5th. Lawrence has 35 years’ of diverse hands-on experience. He recently founded WestBay Capital Advisors, providing business advisory & capital markets expertise to the junior & mid-tier sectors of the mining industry.
From the first uttering of, “Hi, I’m starting a gold royalty company. Can I buy a piece of your project?” to, “Hi, I have pieces of ten gold and silver projects, with partners such as Glencore and Goldcorp, leave your proposal on my desk,” in six short months.
The odds of a gold prospect ever becoming a mine are said to be one in a thousand. While many a junior mining investor will take those odds, biting the hook of a promoter luring them on the latest 10-bagger, the reality is the chances of success are stacked against both promoter and investor.
On June 12th Metalla Royalty & Streaming (CSE: MTA) (OTCQB: EXCFF) (FRANKFURT: X9CP) announced that it had entered into a transformational agreement to acquire a portfolio of 3 Royalties and 1 Streaming assets from Coeur Mining (NYSE: CDE). The purchase price was US$ 13 M, consisting of common shares in Metalla that will be 19.9% of pro-forma capital structure. As per terms of the agreement, assuming a C$0.60 deemed conversion price, the remainder of the US$ 13 M purchase price would be a ~US$ 6.6 M unsecured convertible bond with a 5.0% coupon.
On June 11th, Metalla (MTA.C) announced that it is acquiring a portfolio of three (3) royalties and one (1) stream from Coeur Mining (CDE.NYSE).
Metalla Royalty and Streaming (MTA.C)(“MTA”) significantly added to its streaming portfolio when the company announced closing its acquisition of the Hoyle Pond Extension royalties at the beginning of the month.