Osisko Gold Royalties Ltd. [OR-TSX, NYSE] said Thursday September 13 that it has acquired direct ownership of 5.4 million common shares of Osisko Metals Inc. [OM-TSXV, BWMXF-OTC] for 55 cents a share.
Prior to the transaction, Osisko held just over 9 million common shares of Osisko Metals, and warrants entitling it so purchase 1.25 million common shares. Assuming the warrants were exercised, Osisko would have owned 10.2 million shares of Osisko Metals or 8.79% of the company upon closing.
Immediately after closing of the transaction announced on Thursday, Osisko would own 14.4 million common shares of Osisko Metals or 11.44% of the common shares outstanding. Once the warrants are exercised, Osisko would own 15.7 million shares or Osisko Metals or 12.30%.
Osisko Metals advanced on the news, rising 3.33% or $0.02 to 62 cents. Osisko Gold Royalties eased 2.17% or $0.22 to $9.94.
Osisko Gold Royalties emerged as a world-class gold-focused royalty and streaming company in July 2017, after the company completed the acquisition of a high-quality precious metals portfolio of assets from Orion Mine Finance Group.
It now holds a North American-focused portfolio of over 130 royalties, streams, and precious metals off-takes. Osisko’s portfolio is anchored by five cornerstone assets, including a 5% NSR royalty on the Canadian Malartic Mine, the largest gold mine in Canada.
It also owns a portfolio of investments in publicly held resource companies, including a 32.4% interest in in Barkerville Gold Mines Ltd. [BGM-TSXV], a 55% interest in Osisko Mining Inc. [OSK-TSX] and a 12.6% stake in Falco Resources Ltd. [FPC-TSXV].
Osisko recently acquired an additional net smelter royalty interest in Barkerville’s flagship Cariboo gold project in central British Columbia.
Osisko also entered into a second restated agreement with Barkerville to acquire another 1.75% net smelter return royalty on top of the 2.25% existing NSR on the Cariboo Project for a total of $20 million. Osisko has a further option to purchase another 1% NSR for $10 million, bringing the total NSR to 5%.
With Osisko’s backing, Barkerville is moving ahead with big plans to develop an underground mine and milling operation on the company’s extensive land package, which covers 2,100 km2.
Meanwhile, Osisko Metals recently budgeted $10 million for exploration work across the Bathurst Mining Camp (BMC) in New Brunswick.
The BMC ranks historically as Canada’s largest and longest operating zinc mining camp. It has been a major producer of base metals ores for over 50 years. Total production reached approximately 136 million tonnes of 12% zinc plus lead before the closure of the Brunswick No. 12 in 2013.
Osisko is currently the largest landowner in the region, having consolidated over 63,000 hectares in the camp last year. Its land holdings cover significant portions of the strike length that covered both the former Brunswick No. 12 and No. 6 mines. It is ground that offers some of the most prolific geology in the Bathurst camp, the company said in a press release containing details of its 2017 milestones and outlook for 2018.