Montréal, March 30, 2020 – Osisko Gold Royalties Ltd (the “Company” or “Osisko”) (OR: TSX & NYSE) is pleased to announce that the Company has entered into an agreement (the “Agreement”) with Investissement Québec, a well renowned 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 “Offering”). After the closing of the Offering, Investissement Quebec, will hold 5.04% of the issued and outstanding shares of the Company.
The Offering is expected to close on or about April 1st, 2020 and 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 Offering are subject to a four-month hold period from the date of issuance of the Common Shares under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.
Sean Roosen, Chair and CEO stated: “We are pleased to be announcing today’s financing with Investissement Québec who have showed significant confidence in our business model during exceptionally volatile times. Investissement Québec have been a partner since the early days of the Osisko group and we welcome them onto the shareholder roster in this more meaningful way.
“Investissement Québec is proud to renew its commitment to Osisko and to allow an industry leader to maintain its operations in Québec, 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.
The management and board of directors of Osisko felt it was prudent, in the wake of the Covid-19 market disruptions, to bolster our balance sheet to weather whatever volatility may still come. The Offering also provides the Company with added flexibility for acquisitions under its royalty and streaming core business. Going forward we see the number of, and the quality of, royalty and streaming transactions improving considerably.”
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.
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.
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