Business
Jaguar Mining Announces Closing of Sale of CentroGold Royalty to Metalla Royalty & Streaming
TORONTO, ON / ACCESSWIRE / March 25, 2021 / Jaguar Mining Inc. ("Jaguar" or the "Company") (T...
About this update from Jaguar Mining Inc.
[{"type":"text","content":"Jaguar Mining Announces Closing of Sale of CentroGold Royalty to Metalla Royalty & StreamingTORONTO, ON / ACCESSWIRE / March 25, 2021 / Jaguar Mining Inc. (\"Jaguar\" or the \"Company\") (TSX:JAG)(OTCQX:JAGGF) is pleased to announce that it has completed the sale of its Net Smelter Return (\"NSR\") royalty from gold production at the CentroGold Project (also referred to as the Gurupi Project) located in Maranhão State, Brazil (refer to news release dated March 16, 2021) to Metalla Royalty & Streaming Ltd. (MTA) (\"Metalla\"). With the completion of the transaction, Jaguar has sold, transferred and assigned to Metalla, all of its right, title and interest in and to the NSR for an aggregate purchase consideration valued at up to US$18,000,000.Jaguar retained the NSR when it sold the Gurupi Project to Avanco Resources Limited (\"Avanco\") (refer to news release October 31, 2017), which was subsequently acquired by Oz Minerals Limited (OZL) in March 2018. The NSR is comprised of a 1% net smelter return on the first 500,000 ounces of gold sold, a 2% net smelter return from 500,001 to 1,500,000 ounces of gold, and a 1% net smelter return on gold sales exceeding 1,500,000 ounces of gold.Transaction Structure Jaguar sold the Royalty to Metalla for total consideration of up to US$18 million that includes an upfront payment of US$7 million in cash upon closing, which has been received by the Company, and an additional conditional US$11 million upon achievement of two milestones relating to the CentroGold Project. The first milestone will be triggered upon grant of all project licenses, the lifting or extinguishment of the injunction imposed on the CentoGold Project with no pending appeals. The first milestone payment will be satisfied by Metalla issuing common shares to Jaguar with a value of US$7 million. The second milestone will be triggered upon the CentroGold Project achieving commercial production and will be satisfied by Metalla through a US$4 million payment to Jaguar in cash.Contingent Consideration on Sale of Gurupi to Avanco/Oz MineralsAs per the original earn-in agreement signed in 2017 between Jaguar and Avanco (refer to the Company's news release September 18, 2017), upon achieving clear title and access to the CentroGold Project, Jaguar will also receive in aggregate an additional US$5 million of payments from Avan...