Osisko Gold Royalties Ltd (NYSE: OR) acquires and manages a royalty portfolio for shareholders. This comes from precious metals and other high-quality royalty streams. It is based in Canada and also seeks opportunities worldwide.
This article refers to the royalty company Osisko Gold Royalties (NYSE: OR).
Osisko Development (CVE: ODV) is a gold developer and subsidiary of Osisko Gold Royalties.
Osisko Mining (TSX: OSK) is a separate company owned by Agnico Eagle Mines (NYSE: AEM) and Yamana Gold (NYSE: AUY). Osisko Gold Royalties was created after Osisko Mining was acquired in 2014.
Osisko Gold Royalties Ltd recently completed a $250m bought deal financing with a syndicate of underwriters.
What is a Bought Deal?
A bought deal financing occurs when an investment bank or syndicate of investors commits to buying an entire share offering from a client.
In this case, Osisko Gold Royalties Ltd sold $250m worth of shares to a group of institutional investors.
The syndicate intends that it will go on and sell these purchased shares on the open market.
This bought deal removes Osisko’s financing risk, ensuring that it raised the intended amount.
What is Osisko Gold Royalties?
Osisko Gold Royalties’ portfolio includes royalties, streams, offtakes, options on royalty/stream financings, and exclusive rights to participate in various projects' future royalty/stream financings.
The company's primary asset is a 5% net smelter return royalty on the Canadian Malartic mine.
Osisko aims to maximize shareholder returns by growing its asset base organically and via acquisitions.
Osisko was formed on April 29, 2014, in conjunction with the acquisition of CMC, which held the Canadian Malartic mine and other assets in development, by a partnership formed by Agnico Eagle Mines Limited and Yamana Gold Inc.
Osisko Gold Royalties Ltd has since acquired Virginia Mines Inc and acquired a portfolio of 74 assets from Orion Mine Finance.
Bought Deal Financing March 2022
| Company Name: | OSISKO GOLD ROYALTIES LTD |
|---|---|
| Value of Bought Deal: | $250,170,000 |
| Number of Shares: | 18,600,000 Common Shares |
| Offering Price per Share: | $13.45 per Offered Share |
| Underwriting Agreement Date: | March 18, 2022 |
| Lead Underwriters: | Eight Capital and RBC Dominion Securities Inc |
Osisko Gold Royalties Ltd Recent News
On March 17, 2022, Osisko’s wholly-owned subsidiary, Osisko Bermuda Ltd, entered into a binding agreement with Metals Acquisition Corp.
Metals Acquisition Corp is acquiring the producing CSA mine in New South Wales, Australia and Osisko Bermuda will provide a $90m silver stream to facilitate this transaction.
It will also subscribe to $15m in equity of Metals Acquisition Corp as part of its concurrent equity financing.
This means Osisko Bermuda will purchase 100% of payable silver produced from CSA for the life of the mine. It will also make ongoing payments for refined silver delivered equal to 4% of the spot silver price at the time of delivery.
Osisko Gold Royalties has also provided Metals Acquisition Corp with an option to draw up to an additional $100m in upfront proceeds through the sale of a copper stream.
Meanwhile, Metals Acquisition Corp has agreed to acquire 100% of the shares of the owner of CSA from a subsidiary of Glencore plc (LON: GLEN).
Closing of the Silver Stream and equity subscription is expected in the second half of 2022.
In January, Osisko Bermuda signed a deal with Osisko Utah LLC, a wholly-owned subsidiary of Osisko Development. Osisko Bermuda will pay a $20m to $40m upfront cash payment to facilitate Osisko Development's acquisition of the high-grade Trixie Mine and mineral claims. This covers over 17,000 acres in Central Utah’s historic Tintic Mining District.
Other Bought Deal Transactions
Last week, encore Energy (OTCMKTS: ENCUF) and Liberty Gold Corp (TSX: LGD) were also involved in bought deal financing rounds.
enCore Energy (OTCMKTS: ENCUF)
enCore Energy (ENCUF) is the most diversified in-situ recovery uranium development company in the United States. enCore is focused on becoming the next uranium producer from its licensed and past-producing South Texas Rosita Processing Plant by 2023.
| Company Name: | enCore Energy Corp |
|---|---|
| Value of Bought Deal: | $29,999,998.26 |
| Number of Units: | 19,607,842 units of the Company |
| Offering price per unit: | $1.53 per unit* |
| Underwriting Agreement Date: | March 18, 2022 |
| Lead Underwriters: | Clarus Securities Inc |
| Underwriters: | PI Financial Corp and Red Cloud Securities Inc |
* Each Unit is comprised of one common share and one-half of one Common Share purchase warrant. Each Warrant entitles the holder thereof to purchase one Common Share at an exercise price of $2.00 until March 25, 2024.
Liberty Gold Corp. (TSX: LGD)
Liberty Gold (TSX: LGD) is focused on exploring the Great Basin of the United States, home to large-scale gold projects that are ideal for open-pit mining. This region is one of the most prolific gold-producing regions globally and stretches across Nevada and into Idaho and Utah.
| Company Name: | Liberty Gold Corp. |
|---|---|
| Value of Bought Deal: | CAD$30,000,300 |
| Number of Common Shares: | 27,273,000 |
| Offering Price per Share | CAD$1.10 per Common Share |
| Underwriting Agreement Date: | March 18, 2021 |
| Lead Underwriters: | National Bank Financial Inc. and BMO Nesbitt Burns Inc |
| Underwriters: | Sprott Capital Partners LP, Cormark Securities Inc., Desjardins Securities Inc., Haywood Securities Inc., PI Financial Corp., and Stifel Nicolaus Canada Inc. |
The offering proceeds will fund the exploration and development of Liberty Gold’s Black Pine and Goldstrike oxide gold development assets in the Great Basin, USA.
Liberty Gold plans to aggressively advance Black Pine in 2022 with 85,000 meters of drilling, engineering, and permitting programs and further de-risking activities.