Osisko a Takeover Target Following Virginia Mines Purchase?

Writing for the Financial Post, Peter Koven suggested that Osisko Gold Royalties (TSX:OR) could be attractive as a takeover target given yesterday’s purchase of Virginia Mines (TSX:VGQ). The company’s new higher market cap – slated to be north of $1 billion – will make Osisko tempting for other large royalty firms.

As quoted in the publication:

On Monday, the Montreal-based company announced a deal to buy Virginia Mines Inc. and its lucrative royalty on the Éléonore gold mine. That will move Osisko’s market cap over $1-billion and make it a logical target for the mining industry’s biggest royalty firms, said TD Securities analyst Carey MacRury.

MacRury said in a note:

The combined company would have all of the characteristics that should attract bidders — high-quality revenue streams, long life assets, low political risk profile, senior producer operators, and taking out Osisko would have the benefit of eliminating a well-funded competitor in the royalty space.

Click here to read the full Financial Post article.