The consolidation will create a ‘leading emerging’ intermediate royalty entity in Canada.
The merged entity will have a combined portfolio of 105 royalties and streams with 20 years of sustainable growth, noted the companies in a joint statement.
According to the companies, the combination will help them in terms of their strategic positioning, scale and capital markets profile, and boost their trading liquidity.
The companies said their assets are in tier-one jurisdictions such as Canada, the US, Australia and Latin America. The net asset value of the top ten assets with an average mine life of 20 years is estimated to be around $13bn.
As per the agreed terms, shareholders in Nova will secure 0.36 of a common share in Metalla’s capital for each share held, at $1.39 apiece.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
On deal completion, existing Metalla and Nova shareholders will own 60% and 40% of the combined company, respectively.
Metalla president and CEO Brett Heath said: “We are very excited about the combination of these businesses. This merger represents a transformative moment for both companies and will lay a clear, low-risk path to becoming an intermediate royalty company.
“Together, we expect that our peer-leading, high-quality growth, underpinned by some of the best-in-class operators in the mining sector, will deliver superior long-term value for our shareholders.”
Beedie Capital, an investment company and a partner of Metalla, has agreed to invest $10.9m and increase its existing convertible loan to $36.65m.
After the investment, Beedie would own a 9.7% stake in the merged group on a non-diluted basis.