Osisko Gold Royalties has received $118.5-million from Pretium Resources, which has repurchased the Brucejack gold and silver stream, allowing the precious metals royalty company to repay debt and to fund share repurchases.
The TSX- and NYSE-listed company said on Wednesday that it would repay about C$58-million under the revolving credit facility, leaving it with about C$30-million outstanding on the facility.
Chairperson and CEO of Osisko further commented that the company believed its shares were an attractive investment opportunity and that it would deploy up to C$100-million towards the share buyback programme.
The actual number of common shares that may be purchased and the timing were still to be determined.
Pretium announced the repurchase of the callable 8% gold and silver stream for $237-million a day earlier. Osisko, however, noted that it continued to retain exposure to the British Columbia-based mine through its 50% gold offtake interest.
The stream repurchase would also not affect Osisko’s 2018 production guidance of 77 500 to 82 500 gold equivalent ounces.
Osisko holds a North American focused portfolio of over 130 royalties, streams and precious metal offtakes. Osisko’s portfolio is anchored by its 5% net smelter return royalty on the Canadian Malartic mine, which is the largest gold mine in Canada.