Photo by: Reuters
TORONTO (miningweekly.com) – Canadian explorer Osisko Gold Royalties on Friday announced that it had lifted its interest in gold explorer NioGold Mining and base metals explorer Falco Resources.
The TSX-listed firm closed a C$4.9-million private-placement for 14-million flow-through shares of NioGold at a price of C$0.35 a share, lifting its interest to 19.5%.
Osisko now owned 23.56-million NioGold shares.
The company also bought from NioGold rights to repurchase a portion of the royalties on certain NioGold claims for C$150 000. Osisko would buy the right to repurchase Marban and Malartic Hygrade-NSM royalties. NioGold's land-holdings within the Abitibi region in Quebec cover 130 km2.
Osisko held a royalty on the Canadian Malartic gold mine, located in Malartic, Quebec, as well as several other exploration projects.
NioGold’s flagship projects were located in the Cadillac-Malartic-Val-d'Or region of the prolific Abitibi gold mining district, in Quebec.
Osisko on Friday also noted that it had entered into a share purchase agreement with QMX Gold on Thursday to buy 1.49-million common shares of Falco at a price of C$0.45 apiece for C$670 045.50. This represented about 2.04% of Falco’s issued and outstanding common shares.
Subject to obtaining permission from the TSX-V, Osisko had also intended to acquire a further 1.21-million Falco shares that would be subject to an escrow agreement at a price of $0.27 apiece.
Osisko already owned eight-million shares in Falco before the transaction was announced and, should both transactions close successfully, the company would own 14.99% of Falco.
Falco agreed to appoint a nominee of Osisko to the Falco board.
Osisko said it intended to hold the shares for investment purposes and did not plan to further increase its stake.
Falco owned the mineral rights to 14 former mines within a 700 km2 land package in the Abitibi region of Quebec.