Osisko Gold Royalties Ltd. has entered into a definitive agreement with Barkerville Gold Mines Ltd., in which Osisko will acquire all of the issued and outstanding common shares of Barkerville that it does not currently own. Concurrent to the arrangement, Osisko also announced the formation of the North Spirit Discovery Group, the next step in the evolution of Osisko’s accelerator business that Osisko pioneered over the last five years, with the goal of privatizing and surfacing value in resource development projects, according to the company.
Each shareholder of Barkerville will receive 0.0357 of a common share of Osisko for each share of Barkerville held. The exchange ratio implies consideration of C$0.58 per Barkerville share. The exchange ratio implies a total equity value of approximately C$338 million on a fully diluted in the money basis. Upon completion of the transaction, current Osisko and Barkerville shareholders will hold approximately 91% and 9% of Osisko shares outstanding, respectively.
