Osisko Gold Royalties (TSX: OR; NYSE: OR) has agreed to acquire an additional 1.75% net smelter return royalty (NSR) for $20 million on the Barkerville Gold Mines’ (TSXV: BGM; US-OTC: BGMZF) Cariboo gold project in British Columbia, raising its total royalty on the project to 4%.
Osisko can add a further 1% to its NSR for $13 million at any time before the end of the year.
Barkerville will also give the company 10 million warrants that it can exchange for shares at a 75¢ exercise price over three years.
The company currently owns 32.4% of Barkerville shares. That number would rise to 34.7% if it exercises its warrants.
The deal leaves Barkerville well funded to continue developing Cariboo, where it recently cut 14.7 grams gold over 23.6 metres from 120 metres downhole in the project’s Mosquito Creek zone as part of its 50,000-metre 2018 exploration program.
Continue reading at The Northern Miner.