Osisko Gold Royalties Ltd. (TSX:OR) today announces that it has entered into an agreement with a syndicate of underwriters, co-led by BMO Capital Markets and RBC Capital Markets, pursuant to which the underwriters have agreed to buy on a bought deal basis, 9,940,000 units of the Corporation at a price of C$15.10 per Unit representing aggregate gross proceeds to Osisko of C$150,094,000. Each Unit entitles the holder to acquire, for no additional consideration, one common share of Osisko and one-half of one common share purchase warrant of Osisko.
Each full Warrant will entitle the holder thereof to purchase one Common Share of the Corporation at a price of $19.08 per Common Share, for a period of 36 months following the Closing Date.
In addition, Osisko has agree to grant to the underwriters an option to purchase up to an additional 1,491,000 Units at a price of C$15.10 per Unit, on the same terms and conditions as the Offering, exercisable at any time, in whole or in part, until the date that is 30 days following the closing of the Offering. If the option is exercised in its entirety, the aggregate gross proceeds of the Offering to Osisko will be C$172,500,000.
The Corporation plans to use the net proceeds from the Offering for working capital and general corporate purposes, including funding resource royalty and stream acquisitions.
The Units to be issued under the Offering will be offered by way of a short form prospectus in all of the provinces of Canada.
The offering is anticipated to close on or about February 26, 2016 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
About Osisko Gold Royalties Ltd.
Osisko is an intermediate mining royalty and exploration company with two world-class gold royalty assets. These two cornerstone assets are a 5% net smelter return (“NSR”) royalty on the world-class Canadian Malartic gold mine, located in Malartic, Québec, and a 2.0-3.5% NSR on the Éléonore gold mine, located in James Bay, Québec. Osisko also holds a 2-3% NSR royalty on the Island Gold Mine, a 2% NSR royalty on the Lamaque South Project, a 3% NSR royalty on the Malartic CHL property as well as a 2% NSR royalty on the Upper Beaver, Kirkland Lake and Hammond Reef gold exploration projects in Northern Ontario. The Company also owns a 9.8% equity interest in Labrador Iron Ore Royalty Corporation.
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