Osisko Announces Private Placement and NSR with Barkerville Gold

Osisko Gold Royalties Ltd. (TSX:OR) announced that it’s entered into a binding letter agreement with Barkerville Gold Mines Ltd. (TSXV:BGM) under which it will purchase 32 million common shares of Barkerville, as well as a 1.5-percent NSR on the Cariboo gold project.
As quoted in the press release:

Private Placement
Pursuant to the Private Placement, Osisko agreed to acquire 32 million flow-through common shares of Barkerville at a price of C$0.32 per share, for total proceeds to Barkerville of C$10,240,000. Following the Private Placement, Osisko expects to have ownership over 47,625,000 common shares of Barkerville, representing approximately 19.9% of the issued and outstanding Barkerville shares.
Osisko will file an Early Warning Report in connection with this non-brokered private placement with Barkerville.
Royalty Financing
Osisko has also agreed to acquire a 1.5% net smelter return (“NSR”) royalty on the Cariboo Gold Project for a cash consideration of C$25 million. As part of the Royalty Financing, Osisko and Barkerville have also agreed to negotiate a gold stream agreement (“Gold Stream Agreement”) following the completion by Barkerville of a feasibility study on the Cariboo Gold Project. Following a 60 day negotiation period, if Osisko and Barkerville have not entered into a Gold Stream Agreement, Barkerville shall either grant a right to Osisko to purchase an additional 0.75% NSR royalty for consideration of C$12.5 million, or make a payment of C$12.5 million to Osisko.

Sean Roosen, chairman and CEO of Osisko, commented:

We are pleased to fund Barkerville’s exploration and development activities in an evolving gold mining district and are pleased to provide complementary technical support to the Barkerville team.

Click here to read the full Osisko Gold Royalties Ltd. (TSX:OR) press release.