Barkerville Gold Mine Ltd* (BGM : $0.52), Net Change: 0.05, % Change: 9.47%, Volume: 879,110
Osisko Gold Royalties Ltd* (OR : $14.98), Net Change: -0.41, % Change: -2.66%, Volume: 493,354
ALL TOLD, IT’S ALL ABOUT THE GOLD. Barkerville Gold Mines announced on Monday that it entered into agreement
with Osisko Gold Royalties, whereby Osisko has agreed to purchase an additional 0.75% net smelter return (NSR) royalty on
BGM’s Cariboo gold project for cash consideration of ~$12.5M. Upon completion of the royalty purchase, Osisko's total NSR
royalty will be 2.25%. The grant of the additional royalty will cancel Osisko's royalty right which was granted in an agreement
between Osisko and BGM dated Feb. 5, 2016. Osisko will, however, retain a right of first refusal relating to any gold stream
offer received by BGM with respect to the Cariboo project. Separately, on Tuesday BGM releases additional results from the
continuing 130,000-metre phase II Island Mountain exploration drilling program at Cariboo. The company is currently
exploring and delineating Island Mountain with seven drill rigs and has now relocated an eighth rig to the Valley Zone which
occurs between Cow and Island Mountains. Some highlights from the results include an intersection of 12.52 g/t Au over 3.70
metres and another intercept of 24.70 g/t Au over 6.60 metres in the same hole. BGM says the program intends to determine
the extent of the vein systems that were historically never explored, and is aimed at discovering new vein systems and sulphide
replacement bodies that will ultimately inform a maiden resource.
Canaccord Morning Coffee – Wed. Mar 29, 2017
