JOHANNESBURG (miningweekly.com) – TSX-listed Osisko Gold Royalties has entered into a C$10.2-million private placement with TSX-V-listed Barkerville Gold Mines and a royalty financing agreement with Cariboo gold project, in British Columbia, Canada.
Osisko would buy 32-million flow-through common shares of Barkerville Gold Mines at C$0.32 a share, taking its stake in the company to 19.9%.
“We are pleased to fund Barkerville's exploration and development activities in an evolving gold mining district and are pleased to provide complementary technical support to the Barkerville team," Osisko chairperson and CEO Sean Roosen said.
The deal would see Roosen appointed co-chairperson of Barkerville and current Barkerville director Chris Lodder serving as Osisko’s second board nominee.
Osisko and Barkerville would also enter into a technical advisory agreement whereby Osisko would review data and provide advice to Barkerville during the exploration, development and construction of the project.
Meanwhile, Osisko also entered into a 1.5% net smelter return (NSR) royalty agreement for the Cariboo gold project for C$25-million in cash.
As part of the royalty financing, Osisko and Barkerville also agreed to negotiate a gold stream agreement following Barkerville’s completion of a feasibility study on Cariboo.
Barkerville would appoint Osisko nominees as president and COO, while Barkerville's current president and CEO Thomas Obradovich continued as CEO.
Edited by: Creamer Media Reporter
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