Osisko Gold puts in another 25 mil plus option for 12.5 mil more
Osisko Gold, Barkerville close royalty financing
2016-02-05 08:41 ET - News Release
Shares issued 246,192,168
BGM Close 2016-02-04 C$ 0.28
From News Release (C:OR) Osisko Gold Royalties Ltd
Mr. Sean Roosen of Osisko reports
OSISKO-BARKERVILLE CLOSE ROYALTY FINANCING AND PRIVATE PLACEMENT
Osisko Gold Royalties Ltd. and Barkerville Gold Mines Ltd. have closed their previously announced royalty financing and private placement.
Sean Roosen, chairman and chief executive officer of Osisko, commented on the transaction, "This is an important milestone in respect to our investment in Barkerville and we look forward to working with the team in place to create additional value at the Cariboo gold project."
Tom Obradovich, chief executive officer of Barkerville, commented: "We are pleased to have Osisko as a strategic investor and technical partner. With this financing now completed, we can work aggressively to resume gold production, define the Cow Mountain resource and develop additional resources through targeted exploration."
Private placement
On Nov. 30, 2015, Osisko and Barkerville announced that they had entered into a binding letter agreement whereby Osisko agreed to purchase 32 million common shares, issued on a flow-through basis of Barkerville.
On Dec. 24, 2015, Osisko and Barkerville announced the completion of the first portion of the private placement, whereby Osisko subscribed for 18.75 million flow-through shares at a price of 32 cents per share for gross proceeds of $6-million.
Today, the companies announce that Osisko has purchased an additional 13.25 million flow-through shares at a price of 32 cents for total gross proceeds of $4.24-million, representing the balance of flow-through shares issuable pursuant to the private placement.
Osisko now holds 47,625,000 common shares and 4,687,500 common share purchase warrants of Barkerville. Osisko has filed an early warning report in connection with the private placement.
Royalty financing
The companies have closed the acquisition of a 1.5-per-cent net smelter return royalty on the Cariboo gold project for a cash consideration of $25-million, as previously announced on Nov. 30, 2015.
In connection with the purchase of this NSR royalty, the companies have also agreed to negotiate a gold stream agreement following the completion of a feasibility study by Barkerville on the Cariboo gold project. Following a 60-day negotiation period, if the companies have not entered into a gold stream agreement, Barkerville shall either grant a right to Osisko to purchase an additional 0.75-per-cent NSR royalty for consideration of $12.5-million, or make a payment of $12.5-million to Osisko.
Appointments and technical advisory
Sean Roosen has been appointed a director and co-chairman of Barkerville, and Chris Lodder, currently a director of Barkerville, will serve as Osisko's second nominee to Barkerville's board of directors.
Mr. Lodder has been appointed as president of Barkervile, and Luc Lessard has been appointed as Barkerville's chief operating officer. Tom Obradovich will continue to serve as chief executive officer of the company.
The two companies have entered into a technical advisory agreement whereby Osisko will review data and provide technical advice to Barkerville during the exploration, development and construction of the project.
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