MONTREAL – Osisko Gold Royalties
has announced a $150-million bought deal financing and a $50-million investment by Ressources Québec (a subsidiary of Investissement Québec), money that will bulk up the corporate treasury to fund royalty and streaming deals.
The bought deal financing is underwritten by a syndicate, co-led by BMO Capital Markets and RBC Capital Markets. Osisko will issue 9.94 million units at a price of $15.10 per unit for gross proceeds of $150.09 million. Each unit entitles the bearer to acquire one Osisko common share and one-half of a common share purchase warrant. Each full warrant will entitle the holder to purchase a common share at a price of $19.08 within the next 36 months.
The underwriters have also been given an option to buy an additional 1.49 million units at a price of $15.01 per unit under the same conditions as the offering.
The deal with Ressources Québec would allow that entity to subscribe to a $50 million convertible debenture that will mature in five years and bear an interest rate of 4% per year, payable quarterly. The debenture may be converted into Osisko common shares at a price of $19.08 any time during the term of the debenture.
Information about Osisko’s asset portfolio may be found at OsiskoGR.com