Montreal-based Osisko Gold Royalties Ltd. said it is more than doubling its precious metals portfolio with the $1.13 billion acquisition of diamond, gold and silver assets from U.S. private equity firm Orion Mine Finance Group.
Osisko has been seeking out such a “transformational” acquisition since the company formed three years ago, said CEO Sean Roosen. Monday’s announcement positions the company as the “leading growth story” among senior precious metals royalty companies, which also include larger peers such as Franco-Nevada Corp. and Wheaton Precious Metals, he said.
“We have kept our powder dry waiting for a transaction like this, we have deployed and we hope that our shareholders will be very happy with the outcome,” Roosen said on a conference call Monday. The news sent Osisko shares up more than 10 per cent Monday to $15.92 on the Toronto Stock Exchange.
“We will have industry-leading cash flow growth and a precious metals North American focus. It’s quite a significant advancement and a rare opportunity for us to complement the existing asset base,” Roosen said.
Osisko will pay $675 million in cash and $450 million in shares to Orion for the portfolio of 74 royalties, streams and precious metals offtakes.
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