Osisko Gold Royalties to Acquire Royalty Rights from Oban Mining

Osisko Gold Royalties (TSX:OR) has entered an agreement to buy roughly $20 million worth of shares from Oban Mining (TSX:OBM). The agreement comes following Oban’s earlier announcement that it would combine with four other gold miners.

As quoted in the press release:

The completion of the Transaction is subject to the satisfaction of certain conditions precedent, including that Osisko holds no more than 19.9% on a non-diluted basis of the issued and outstanding common shares of Oban. The number of Purchased Shares to be acquired by Osisko may be reduced to the extent that any of the Proposed Oban Transactions are not completed.

The financing commitment includes the grant to Osisko of first rights to participate in royalties and streams created by Oban following the Proposed Oban Transactions and pro rata financing participation rights. For a period of five years from the date of closing of the Transaction, Osisko will have a one-time right, should Oban seek financing in debt or equity markets, to provide first financing to Oban equal to $5 million in exchange for the granting by Oban of a 1% NSR over such properties as are wholly owned by Oban immediately following completion of the Transaction.

Following the closing of the Transaction, Osisko will be entitled to nominate three directors who will be put forward and included in management’s nominees for directors at any meeting of Oban shareholders, as long as Osisko holds at least 10% of the issued and outstanding common shares of Oban on a non-diluted basis.

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