Shareholders of Osisko Gold Royalties Ltd (TSX, NYSE: OR) have approved the company’s proposed buy of a precious metals portfolio from U.S. private equity firm Orion Mine Finance Group. The deal, announced in June, is valued at $1.13 billion. Osisko, a Montréal-based intermediate precious metal royalty and stream company, said the acquisition is expected to close today. Caisse de dépôt et placement du Québec and the Fonds de solidarité FTQ, both existing investors in the company, earlier agreed to fund about 41 percent of the $675 million cash payment for the portfolio.
Osisko Shareholders Overwhelmingly Approve Orion Transaction
MONTRÉAL, QUÉBEC–(Marketwired – July 31, 2017) – Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (TSX:OR)(NYSE:OR) is pleased to announce that its shareholders have overwhelmingly approved at 99.6% the issuance of shares required to complete the acquisition of the Orion portfolio consisting of 74 royalties, streams, and precious metal offtakes at the Special Meeting of Shareholders held today in Montréal. Approximately 76.8% of the shares outstanding at the record date of June 19, 2017, were represented in person or by proxy at the meeting.
Sean Roosen, Chair of the Board of Directors and Chief Executive Officer, commenting on the results of the Meeting of Shareholders: “We are extremely grateful for the strong support for our transformational transaction with Orion which, we believe, will deliver great returns for our shareholders”.
The resolution approved by disinterested shareholders authorizes the Corporation to issue a total of 50,179,414 shares, including 30,906,594 shares to Orion Mine Finance as part of the consideration for the acquisition, and 19,272,820 shares as part of private placement to the Caisse de dépôt et placement du Québec and the Fonds de solidarité FTQ at a price of $14.56 to partially fund the cash consideration of the acquisition.
The transaction is expected to close later today.
Osisko Gold Royalties Ltd is an intermediate precious metal royalty company focused on the Americas that commenced activities in June 2014. Prior to the Transaction announced on June 5, 2017, it held over 50 royalties and one stream, including a 5% NSR royalty on the Canadian Malartic Mine (Canada), a 2.0% to 3.5% sliding scale NSR royalty on the Éléonore Mine (Canada) and a silver stream on the Gibraltar mine (Canada). Osisko also owns a portfolio of publicly held resource companies, including a 15.3% interest in Osisko Mining Inc., 14.7% in Osisko Metals Ltd., 13.3% in Falco Resources Ltd. and 33.4% in Barkerville Gold Mines Ltd.
Osisko’s head office is located at 1100 Avenue des Canadiens-de-Montréal, Suite 300, Montréal, Québec, H3B 2S2. For more information, visit osiskogr.com.
Osisko Gold Royalties
Vice President, Investor Relations
Osisko Gold Royalties
Joseph de la Plante
Vice President, Corporate Development
Photo courtesy of Osisko Gold Royalties Ltd