Alamos has the right to a further $600,000 should Metalla exercise its option to buy a 1% NSR royalty on Minera Alamos' La Fortuna mine, currently being developed in Mexico's Durango state.
Alamos will receive 8.2 million Metalla shares and will own 6.26% of Metalla's outstanding equity.
"The sale of the royalties is consistent with the company's strategy of surfacing value from within its non-core assets," Alamos said.
The transaction expands Metalla's portfolio to 43 royalties and streams with strong counterparties including Agnico Eagle Mines, SSR Mining, Kirkland Lake Gold, Waterton Global Resource Management, Buenaventura and Monarch Gold, among others.
Metalla CEO Brett Heath hailed the transaction as a major milestone for the company.
"Today's accretive transaction with Alamos significantly enhances Metalla's existing portfolio and will drive production growth, cash flow, NAV and increase our precious metals optionality."