Canadian Mining Journal


GOLD: Osisko ups bought deal to $284M

Osisko Gold Royalties holds a 5% NSR in the Canadian Malartic gold mine. (Credit: Agnico Eagle Mines)

MONTREAL – The ink was hardly dry on yesterday’s $260-million offering, when Osisko Gold Royalties announced that the deal was increased to $284 million. The original agreement was to sell $160 million of convertible debentures in a public offering with the help of a group of underwriters co-led by National Bank Financial, BMO Capital Markets, and Desjardins Capital Markets. A separate, $100 million in a private placement of debentures was also made with PSP Investments (the Public Sector Pension Investment Board).

As part of the arrangement, the underwriters were given the option to boost their participation, which they did by an extra $24 million. That brought the total to $284 million.

PSP Investments has been given the option to increase its participation by an additional $16 million. If this company exercises its option, the gross amount raised will be $300 million.

Osisko plant to use the proceeds of both the private and public bought deals primarily to fund the acquisition of additional precious metal royalties and streams. The debentures bear an interest rate of 4% per year, payable on June 30 and Dec. 31 each year. The debentures will be convertible at the holder’s option into Osisko common shares at a conversion price of $22.89 per share. The debentures mature on Dec. 31, 2020, and may be redeemed on or after Dec. 31, 2020 in certain circumstances.

Osisko holds a North American focused portfolio of over 130 royalties, streams and precious metal offtakes, including a 5% net smelter royalty on the Canadian Malartic mine, which is the largest gold mine in Canada. Osisko also owns a portfolio of publicly held resource companies, including a 15.7% interest in Osisko Mining, a 12.8% interest in Osisko Metals, a 13.3% interest in Falco Resources, and a 32.8% interest in Barkerville Gold Mines.

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