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Metalla Announces Friendly Acquisition of ValGold and Royalty on the Garrison Project
VANCOUVER, British Columbia and TORONTO, May 10, 2018 (GLOBE NEWSWIRE) -- Metalla Royalty & Streaming Ltd. (“Metalla”) (TSXV:MTA) (OTCQX:MTAFF) (Frankfurt:X9CP)
About this update from Metalla Royalty & Streaming Ltd.
[{"type":"text","content":" VANCOUVER, British Columbia and TORONTO, May 10, 2018 (GLOBE NEWSWIRE) -- Metalla Royalty & Streaming Ltd. (“Metalla”) (TSXV:MTA) (OTCQX:MTAFF) (Frankfurt:X9CP) and ValGold Resources Ltd. (“ValGold”) (TSXV:VAL) are pleased to announce that they have entered into a definitive arrangement agreement (the \"Arrangement Agreement\") whereby Metalla will acquire all of the issued and outstanding common shares of ValGold (the \"Arrangement\"). Under the terms of the Arrangement Agreement, all of ValGold’s issued and outstanding common shares will be exchanged for Metalla common shares on the basis of 0.1667 of a Metalla common share for each ValGold common share (the \"Exchange Ratio\"). All currency is in Canadian Dollars unless otherwise noted. The Exchange Ratio implies a consideration of $0.13 per ValGold common share, based on the 40-day volume weighted average price (“VWAP”) of the Metalla common shares on the TSX Venture Exchange (“TSXV”) for the period ending May 9, 2018. This represents a 79% premium to the 40-day VWAP of ValGold common shares and 62.5% premium as of market close on May 9, 2018, on the TSXV. The undiluted equity value of the transaction is approximately $7.2 million. BENEFITS TO METALLA SHAREHOLDERS Acquisition of a 2% NSR royalty on the Garrison Project in a world-class mining district in Ontario, Canada Addition of a proven mine builder and high-quality counterparty Osisko Mining Inc. (TSX:OSK) the management team largely responsible for the discovery, development, financing, and commissioning of the Canadian Malartic Mine Enhances and expands growth-profile with a royalty on a gold development asset with approximately 1.2 million oz. measured and indicated resource and a 0.8 million oz. inferred resource Maintains cash balance through an all-share transaction Accretive to existing Metalla shareholders on a per share basis BENEFITS TO VALGOLD SHAREHOLDERS An immediate premium of 79% to Valgold’s 40-day VWAP Enhanced market liquidity Access to Metalla’s dividend stream and policy on closing Significant asset diversification from Metalla’s portfolio of producing, development, and exploration royalties and streams with top-tier operators Maintains upside exposure to the Garrison Project through a Metalla ownership position and expected re-valuation of the related royalty through enhanced price discovery re...