Osisko Gold to expand diversify through 1125 billion asset deal with Orion

by The Canadian Press Posted Jun 5, 2017 5:21 am MDT Last Updated Jun 5, 2017 at 6:00 am MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email MONTREAL – Osisko Gold Royalties Ltd (TSX:OR) will pay $1.125 billion in cash and stock to acquire a portfolio of royalty and production streams from Orion Mine Finance Group, the companies announced Monday.The purchase price consists of $675 million cash and $450 million in Osisko Gold Royalties common shares.Among assets that Osisko Gold Royalties will acquire is the Renard diamond stream, which entitles Osisko to 9.6 per cent of production from a new Quebec mine at a fixed price of US$50 per carat.To pay for some of the cash portion of the deal, Osisko will sell shares worth a total of $275 million in a private placement to two Quebec provincial funds, the Caisse de depot and the Fonds de solidarite.The rest of the cash will come from Osisko’s existing bank credit and its cash on hand.Osisko says it will end up with a total of 131 royalties and revenue streams, including its original royalty on the Malartic gold mine in Quebec, once the deal is complete.Besides the cash, Orion will receive about 30.9 million Osisko common shares valued at $14.56 each, a premium to Friday’s closing price of $14.40.The Caisse will also pay $14.56 per Osisko share to a total of $200 million. The Solidarity fund will buy $75 million worth of stock at the same price. Osisko Gold to expand, diversify through $1.125 billion asset deal with Orion read more