OSISKO ENTERS INTO AN AGREEMENT WITH INVESTISSEMENT QUÉBEC FOR A NON-BROKERED PRIVATE PLACEMENT OF $85 M
March 30 2020 - 8:00AM
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 SinghPresidentTel. (514)
940-0670ssingh@osiskogr.com |
|
Forward-looking Statements
Certain statements contained in this press
release may be deemed “forward‐looking statements” within the
meaning of applicable Canadian and U.S. securities laws. These
forward‐looking statements, by their nature, require Osisko to make
certain assumptions and necessarily involve known and unknown risks
and uncertainties that could cause actual results to differ
materially from those expressed or implied in these forward‐looking
statements. Forward‐looking statements are not guarantees of
performance. Words such as “may”, “will”, “would”, “could”,
“expect”, “believe”, “plan”, “anticipate”, “intend”, “estimate”,
“continue”, or the negative or comparable terminology, as well as
terms usually used in the future and the conditional, are intended
to identify forward‐looking statements. Information contained in
forward‐looking statements is based upon certain material
assumptions that were applied in drawing a conclusion or making a
forecast or projection, including management’s perceptions of
historical trends, current conditions and expected future
developments, as well as other considerations that are believed to
be appropriate in the circumstances. Osisko considers its
assumptions to be reasonable based on information currently
available, but cautions the reader that their assumptions regarding
future events, many of which are beyond the control of Osisko, may
ultimately prove to be incorrect since they are subject to risks
and uncertainties that affect Osisko and its business. Such risks
and uncertainties include, among others, risks relating to the
Offering; volatility in the trading price of Common Shares of the
Company; risks relating to the ability of the Company to obtain
required approvals, complete definitive documentation and complete
the Offering, the terms and duration of any government orders
suspending or limiting operations that are applicable to Osisko;
the responses of relevant governments to the COVID-19 outbreak and
the effectiveness of such responses.
For additional information with respect to these
and other factors and assumptions underlying the forward‐looking
statements made in this press release, see the section entitled
“Risk Factors” in the most recent Annual Information Form of Osisko
which is filed with the Canadian securities commissions and
available electronically under Osisko’s issuer profile on SEDAR at
www.sedar.com and with the U.S. Securities and Exchange Commission
and available electronically under Osisko’s issuer profile on EDGAR
at www.sec.gov. The forward‐ looking statements set forth
herein reflect Osisko’s expectations as at the date of this press
release and are subject to change after such date. Osisko disclaims
any intention or obligation to update or revise any forward‐looking
statements, whether as a result of new information, future events
or otherwise, other than as required by law.
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