Osisko Gold Royalties Ltd (TSX/NYSE: OR) has entered into an agreement with Investissement Québec for an investment of $85 million by way of a non-brokered private placement of 7,727,273 common shares at a price of $11.00 per common share.
Following the closing of the private placement, Investissement Québec will hold 5.04% of the issued and outstanding shares of Osisko Gold Royalties.
The financing is expected to close on or about April 1st, 2020. Osisko Gold Royalties intends to use proceeds for general working capital purposes.
Investissement Québec will join Van Eck Associates Corporation (9.7%) and Orion Resource Partners (5.9%) as major institutional investors in Osisko.
Investissement Québec also through Ressources Québec holds a five-year $50 million convertible debenture convertible into Osisko shares at a price of $19.08 per Osisko share.
photo credit: Osisko Gold Royalties
News Release
OSISKO ENTERS INTO AN AGREEMENT WITH INVESTISSEMENT QUÉBEC FOR A NON-BROKERED PRIVATE PLACEMENT OF $85 M
Montréal, March 30, 2020 – Osisko Gold Royalties Ltd (the “Company” or “Osisko”) (OR: TSX & NYSE) is pleased to announce that it has entered into an agreement with Investissement Québec, a well known Québec institution and long-term supporter of Osisko, for a non-brokered private placement of 7,727,273 common shares (the “Common Shares”) of the Company at a price of $11.00 per Common Share (the “Private Placement”). After the closing of the Private Placement, Investissement Québec will hold 5.04% of the issued and outstanding shares of the Company.
The net proceeds from the Private Placement will be used for general working capital purposes. The Private Placement is expected to close on or about April 1st, 2020. It is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities. The Common Shares issued under the Private Placement are subject to a four-month hold period from the date of issuance of the Common Shares under applicable Canadian securities laws.
Sean Roosen, Chair and CEO stated: “We are pleased to announce today’s financing with Investissement Québec who have shown significant confidence in our business model during exceptionally volatile times. Investissement Québec has been a partner since the early days of the Osisko group and we welcome them onto the shareholder roster in this more meaningful way. The management and board of directors of Osisko felt it was prudent, in the wake of the COVID-19 disruptions, to bolster our balance sheet to weather whatever volatility may still come. The Private Placement also provides the Company with added flexibility for acquisitions of new royalties and streams. Going forward we see the number of, and the quality of, possible royalty and streaming transactions improving considerably.”
“Investissement Québec is proud to renew its commitment to Osisko, a Québec-based industry leader, while providing it with the flexibility needed to overcome the challenges faced by business owners and managers in the wake of the unprecedented COVID-19 crisis,” said Guy LeBlanc, President and CEO of Investissement Québec.”
About Osisko Gold Royalties Ltd
Osisko Gold Royalties Ltd is an intermediate precious metal royalty company focused on the Americas that commenced activities in June 2014. Osisko holds a North American focused portfolio of over 135 royalties, streams and precious metal offtakes. Osisko’s portfolio is anchored by its cornerstone asset, a 5% net smelter return royalty on the Canadian Malartic mine, which is the largest gold mine in Canada. Osisko also owns the Cariboo gold project in Canada as well as a portfolio of publicly held resource companies, including a 15.9% interest in Osisko Mining Inc., 17.9% interest in Osisko Metals Incorporated and a 18.3% interest in Falco Resources Ltd.
Osisko’s head office is located at 1100 Avenue des Canadiens-de Montréal, Suite 300, Montréal, Québec, H3B 2S2.
About Investissement Québec
The mission of Investissement Québec is to participate actively in Québec’s economic development by stimulating business innovation, entrepreneurship and the growth of exports and investment in every region of Québec. The Corporation provides enterprises and entrepreneurs with support services, including technology-based measures, as well as adapted financial solutions and investments. Through its Investissement Québec International division, the Corporation assists enterprises with exports and prospects for foreign investments.
For further information, please contact Osisko Gold Royalties Ltd:
Sandeep Singh
President
Tel. (514) 940-0670
ssingh@osiskogr.com