Metalla Royalty & Streaming Ltd. on May 10 announced a definitive all-share deal for a friendly takeover of ValGold Resources Ltd., which values the transaction at C$7.2 million.

ValGold shareholders will receive 0.1667 of a Metalla share for each ValGold share, representing a 62.5% premium on ValGold's May 9 closing price.

The acquisition secures a 2% net smelter royalty on parts of the Garrison gold project in Ontario, which is wholly owned by Osisko Mining Inc. The royalty covers 35 patented mining claims and three deposits known as the Garrcon and Jonpol properties and the eastern portion of the 903 Zone.

"This acquisition is consistent with our long-term strategy of executing accretive deals in known mining camps with strong counterparties," Metalla President and CEO Brett Heath said in a statement.

The deal is expected to close in mid-July.