JOHANNESBURG (miningweekly.com) – TSX-listed Osisko Gold Royalties has agreed to sell 10 960 000 special warrants of the corporation, on a bought deal private-placement basis, at a price of C$18.25 per special warrant, representing aggregate gross proceeds of about C$200-million.
The Montreal-headquartered gold-focused royalty and stream company explained on Wednesday that it planned to use the net proceeds from the offering for working capital and general corporate purposes.
The deal was struck with a syndicate of underwriters, co-led by Macquarie Capital Markets Canada and RBC Capital Markets.
The underwriters had also been granted an over-allotment option exercisable at any time up until the closing of the offering to increase the size of this offering, at most, by an additional 1 644 000 special warrants for further gross proceeds of up to about C$30-million.
The offering was expected to close on the business day following the closing of the transactions contemplated in the plan of arrangement with Virginia Mines, provided that it did not occur prior to February 17, or later than February 20.
As of November 26, Osisko, which at the time had yet to complete the acquisition of 2.38-million shares in TSX-listed Virginia Mines, acquired a further one-million shares in Virginia.