Business
Jaguar Mining Announces Sale of CentroGold Royalty to Metalla Royalty & Streaming for up to US$18M
TORONTO, ON / ACCESSWIRE / March 16, 2021 / Jaguar Mining Inc. ("Jaguar" or the "Company") (T...
About this update from Jaguar Mining Inc.
[{"type":"text","content":"Jaguar Mining Announces Sale of CentroGold Royalty to Metalla Royalty & Streaming for up to US$18MTORONTO, ON / ACCESSWIRE / March 16, 2021 / Jaguar Mining Inc. (\"Jaguar\" or the \"Company\") (TSX:JAG)(OTCQX:JAGGF) is pleased to announce that it has entered into a Definitive Agreement with Metalla Royalty & Streaming Ltd. (MTA) (\"Metalla\") for the sale of the Company's Net Smelter Return (\"NSR\") royalty from gold production at the CentroGold Project (also referred to as the Gurupi Project) located in Maranhão State, Brazil. The Company has agreed that it will sell, transfer and assign to Metalla all of the Company's 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 the Company sold the Gurupi Project to Avanco Resources Limited (\"Avanco\") (refer to the Company's news release October 31, 2017). Avanco was subsequently acquired by Oz Minerals Limited (ASX: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 StructureJaguar has agreed to sell 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, and an additional 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 and, if necessary, the completion of any and all community relocations. The first milestone payment will be satisfied by Metalla issuing common shares to Jaguar with a value of US$7 million priced at the fifteen (15) trading day volume-weighted average price on the NYSE American on a date that is within 120 days following completion of the trigger.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.Vern Baker, CEO of Jaguar Mining commented; \"We are very pleased with this royalty transaction that will see an immediate monetization of a l...