MONTREAL and QUEBEC CITY – On the eve of their merger, Osisko Gold Royalties and Virginia Mines are bulking up their treasuries. When the merger was announced 10 days go, it was noted that the combined companies will have a market capitalization of $1.3 billion and a combined cash balance of $270 million.
Virginia says it has closed a $28 million private placement with the Caisse de depot et placement du Quebec (CDPQ) and Fonds de solidarite des travailleurs du Quebec (Fonds). Virginia issued them slightly more than 2.02 million shares at a price of $13.83 per share. The shares are under a hold period of four months and one day.
Osisko also issued shares to CDPQ and Fonds. It issued approximately 2.79 million shares at a price of $15.03 per share, raising $42 million.
Osisko further announced that it closed a previously announced $100 million revolving credit facility with National Bank of Canada. The money will bulk up an already plump treasury allowing Osisko to invest in gold royalties and streams. The credit facility has an initial two-year term and is secured by the company’s assets.
Watch for news of the Osisko-Virginia business combination closing at OsiskoGR.com.