Osisko Gold Royalties sells Osisko Mining shares for $132 million

Osisko Gold Royalties Ltd. (TSX-OR, NYSE-OR) has sold 50 million common shares of Osisko Mining Inc. [TSX-OSK] pursuant to a block trade with National Bank Financial and BMO Capital Markets for proceeds of $132 million.,

Following the transaction, Osisko Gold Royalties no longer holds any shares in Osisko Mining. However, it continues to hold a 2.0% to 3.0% net smelter return royalty on the Windfall gold project in Quebec and surrounding property, which is held in a 50/50 joint venture partnership between Osisko Mining and Gold Fields Ltd.

“The sale of our equity position in Osisko Mining serves two purposes,’’ said Osisko interim chief executive officer Paul Martin. “Firstly, it reaffirms Osisko’s commitment to aligning ourselves as a pure-play precious metals royalty and streaming company,’’ he said. “Secondly it bolsters our financial position by injecting immediate cash resources, therefore restoring our balance sheet to a strong position. We remain extremely enthusiastic about our ongoing partnership with Osisko Mining and Gold Fields Ltd at Windfall; a fully-funded, high grade gold project, situated in the province of Quebec, one of the world’s best mining jurisdictions. Osisko maintains its exposure to Windfall through its 2.0% to 3.0% NSR royalty on the project and surrounding property.’’

Immediately prior to the transaction, Osisko owned 50.02 common shares of Osisko Mining, representing 13.3% of the issued and outstanding shares of Osisko Mining on a non-diluted basis. Osisko disposed of the common shares in the ordinary course of business. Osisko held its common shares for investment purposes and, following the transaction, Osisko no long holds any common shares of Osisko Mining. Osisko disposed of the common shares at a price equal to $2.63, net of any applicable commissions.

Osisko Gold Royalties shares advanced on the news, rising 3.1% or 58 cents to $19.34. The shares currently trade in a 52-week range of $24.41 and $15.42.

Osisko Mining shares eased 6.1% or 17.5 cents to $2.67 on volume of 1.23 million. The shares trade in a 52-week range of $4.53 and $2.36.

Osisko Gold Royalties recently announced the appointment of Jason Attew as President and CEO, a move that will take effect on January 2, 2024.

Attew was most recently President and CEO of Liberty Gold Corp. [TSX-LGD]. He is an accomplished mining executive with 30 years of experience in the industry.

Martin was named interim CEO following the departure of former President and CEO Sandeep Singh.

“After careful consideration, the independent directors unanimously concluded that a change of CEO was necessary to best position Osisko for continued long-term success,’’ Joanne Ferstman, Osisko’s Lead Director, on behalf of the Board, said in a recent statement.