Osisko Gold Royalties Acquires Royalties From Teck Resources

Osisko Gold Royalties (TSX:OR) announced Monday that it had entered an agreement to acquire a portfolio of Canadian royalties held by Teck Resources (TSX:TCK.B) for C$28 million, plus a further C$2.5 million paid on confirmation of certain rights. The portfolio includes 31 royalties, mostly net smelter royalties, and a production royalty on properties in Eastern Canada.
As quoted in the press release:

The portfolio includes the following key royalties:

• Three NSR royalties from 2% to 3% on the producing Island Gold Mine properties located in Northern Ontario owned by Richmont Mines Inc.
• 2% NSR royalty on the Lamaque property located in the Abitibi owned by Integra Gold Corp.
• 2% NSR royalty on the Hewfran Block located in Northern Quebec owned by Metanor Resources Inc.
• 0.5% NSR royalty and right to $5 million payment upon commercial production on the Marban property Quebec owned by NioGold Mining Corp and located near the Canadian Malartic Mine in Malartic.
• 1.5% NSR royalty on a portion of the Fenn-Gib property located in northern Ontario owned by Lake Shore Gold Corp.
• 1.5% to 2% NSR royalty on the Garrcon property located in northern Ontario and owned by Northern Gold Mining Inc.

The portfolio also includes other precious metal royalty assets on exploration and development properties. Certain NSR royalties are subject to buy-back clauses.
The Teck Resources Limited transaction is expected to be completed by or before November 16, 2015, and the Teck Metals Ltd. by or before February 28, 2016. The acquisitions will be funded from Osisko’s cash on hand.

Osisko chairman and CEO, Sean Roosen, said:

The addition of this royalty portfolio strengthens our Canadian asset base and adds to the growth profile of our Corporation.

Click here for the full press release.