Gold Royalty Deal Expands Yukon Potential

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Metallic Minerals Corp. (MMG:TSX.V; MMNGF:OTCQB) has signed a new production royalty agreement covering an additional mile of alluvial gold claims at its Australia Creek property in the Klondike Gold District of Yukon Territory. This agreement, announced on April 15, expands the company's leased royalty ground to over two miles and builds on its existing royalty portfolio following initial production in 2023 and 2024. The new lease is with a seasoned Yukon mining operator who brings more than 40 years of experience, and production is expected to begin during the 2025 mining season.

Under the terms of the deal, the operator is required to meet a minimum annual work commitment of CA$500,000 and pay a 12 percent royalty on all gold produced to Metallic Minerals. The company anticipates at least two gold mining operations to be active on its royalty claims in 2025, with ongoing discussions for additional agreements underway. "With gold prices at historic highs, we've seen strong interest in our alluvial gold royalty portfolio," said Greg Johnson, Chairman and CEO of Metallic Minerals, in a company news release. "This agreement supports a second operation capitalizing on today's market conditions with an operator that has a track record of operational excellence and environmental stewardship."

Metallic Minerals holds a 100 percent interest in 36.4 square kilometers of mining rights along Australia Creek, considered a significant eastern extension of the historic Klondike Gold District. The area is recognized by the Yukon Geological Survey as part of the productive Klondike Goldfields, which have historically yielded over 20 million ounces of gold. While Australia Creek itself was not historically mined due to its role as a water source for dredging operations, modern exploration has returned gold-in-gravel values comparable to some of the best-producing areas nearby.

The company reported that site preparation is already underway, including camp setup and road clearing. Funds generated through Australia Creek royalties are expected to support exploration activities at the company's other hard rock projects in Yukon and Colorado.

Gold Demand Builds Amid Economic Volatility

Gold remained the focal point of investor interest as macroeconomic volatility and policy uncertainty continued to drive capital toward safe-haven assets. According to a report published on April 11 by UBS, gold reached a record closing high of US$3,200 per ounce, prompting the bank's Chief Investment Office to raise its base case forecast to US$3,500 per ounce. The team cited "a perfect storm of factors like escalating geopolitical tensions, fears of inflation, and a shifting interest rate outlook" as key contributors to the surge in demand.

UBS added that these price gains were not only being fueled by safe-haven buying but also by a structural shift in asset allocations, with "central banks systematically raising gold's share of total reserves." The bank forecasted central bank gold purchases would reach 1,000 metric tons in 2025, an increase from its previous estimate of 950 metric tons. ETF flows were also expected to reverse a multi-year trend of net selling, with UBS increasing its projection for net buying in 2025 from 300 to 450 metric tons.

In a separate analysis from April 12, Shad Marquitz of Excelsior Prosperity emphasized that gold stood apart from traditional safe havens during a turbulent week in financial markets. "It was gold alone that really separated from the rest of the markets and the rest of the traditional safe havens to be the shining light and refuge from the volatility and market chop," he wrote. Marquitz highlighted that while bonds and the U.S. dollar sold off amid tariff-related disruptions, gold reached new all-time daily and weekly highs. He noted the gold equities' resilience as well, pointing out that "GDX closed the week up at US$49.70 . . .  definitively higher than the 2020 peak."

On April 13, Dominic Frisby of The Flying Frisby also underscored gold's shifting role in global finance, stating that gold was "your hedge against government," especially in an environment where U.S. authorities have used the dollar and treasuries as tools in trade conflicts. He pointed to surging demand from central banks, referencing analyst Jan Nieuwenhuijs's report that China purchased 570 tonnes of gold in 2024 alone. Frisby noted that gold has become increasingly favored as a neutral asset amid financial uncertainty and forecasted that its share of international reserves could rise from the current 20 percent to 40 percent over the next five years.

Finally, in an April 14 sector update, analyst Adrian Day wrote that commodities, and particularly gold, had the strongest risk-reward profile in the current environment of stagflation concerns and policy instability. "The drivers for gold demand are still intact," Day stated, adding that government deficits, dollar weaponization, and geopolitical stressors continued to support the metal. He argued that "gold will continue to shine," citing its historical tendency to outperform during periods of economic volatility and market rotation.

Positive Outlook Supports Recent Share Gains

According to a March 26 report from Peter Krauth of Silver Stock Investor, Metallic Minerals Corp. appeared to be gaining momentum as investor recognition increased.

Krauth stated that "Metallic Minerals Corp. shares are up about 50% year to date, aided by metals prices and value recognition." He also noted that the company's shares "look undervalued and attractive to add on minor weakness," highlighting the potential for continued upside based on current valuation and sector trends.

Advancing a Multi-Asset Royalty and Discovery Model

Metallic Minerals continues to position itself as a hybrid royalty generator and explorer, with the Australia Creek development adding near-term cash flow potential. The company's April 2025 corporate presentation highlights several key catalysts ahead. On the royalty side, alluvial gold production continues into 2024 and is projected to expand in 2025, with ten or more potential mining operations eventually active within its Yukon claims. Additional ground remains available for lease in both Australia Creek and Granite Creek.

Meanwhile, the company is advancing its La Plata Project in Colorado and Keno Silver Project in Yukon. Newmont Corp. holds a 9.5 percent strategic stake in Metallic Minerals focused on the advancement of the La Plata Project, which has an inferred resource of 1.21 billion pounds of copper and 17.6 million ounces of silver. A resource update is expected in the second quarter of 2025, following a drilling campaign partially funded by Newmont. The Keno Silver Project hosts an inaugural inferred resource of 18.2 million silver-equivalent ounces, announced in February 2024, and remains open to significant expansion.

As the company continues to generate revenue through its growing royalty portfolio, it is also leveraging advanced technology such as AI-powered geophysical analysis and USGS-supported regional mapping to accelerate its hard rock exploration. The dual focus on cash flow generation and exploration growth provides multiple near- and mid-term inflection points for Metallic Minerals across its portfolio.

Ownership and Share Structure

About 17% of Metallic Minerals is owned by management and insiders, including CEO Greg Johnson with 4%, Independent Director Gregor Hamilton with 0.93%, and the president, Scott Petsel, with 0.48%.

About 34% is owned by strategic investors, including Newmont's 9.5% and mining financier Eric Sprott, who owns 14.5%.

About 22% is owned institutionally. The rest, 27%, is retail.

Its market cap is CA$39.43 million, with 178.91 million shares outstanding and 130.31 million free-floating. It trades in a 52-week range of CA$0.40 and CA$0.13.