Canada’s Osisko Gold Royalties (TSX, NYSE: OR) is buying all the shares it doesn’t already own in fellow miner Barkerville Gold Mines, in a deal valued at C$338 million (about $255m).
The Montreal-based miner said each Barkerville shareholder would receive 0.0357 common share of Osisko for each share of Barkerville held, implying a value of C$0.58/share, based on Osisko’s Sept. 20 closing price on the Toronto Stock Exchange.
The deal gives it access to Barkerville’s touted Cariboo gold project in British Columbia, which Osisko sees as a “potentially world-class asset” with significant infrastructure in place. The company said the asset has similar attributes to Canadian Malartic mine, when it identified the opportunity.
“Osisko and Barkerville will take advantage of their combined mine building, exploration, permitting, development and construction expertise to advance the Cariboo gold project,” the company’s chief executive chair of the board, Sean Roosen, said in the statement.
According to a preliminary economic assessment (PEA) for the Cariboo project, published last month, the proposed underground mine would produce a high-quality concentrate averaging 20.5 grams of gold per tonne.
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