Osisko Gold Royalties (OR.TSX)

[Pixel8r]

I bought some of these around a week or so ago. I like what I have found out about them so far. I actually sold half of my Sandstorm, after them over doubling, and swapped them into Osisko.

Watch on youtube.com

[Pixel8r]

https://seekingalpha.com/article/4376833-osisko-gold-royalties-entry-opportunity-reorganization

[Pixel8r]

Osisko Gold Royalties to spin-out mining assets; announces concurrent equity offering

Osisko Gold Royalties (NYSE:OR) has announced to transfer certain mining properties, including the Cariboo Gold Project, and marketable securities of ~C$116M, to Barolo in exchange for shares, which will result in a reverse take-over of Barolo.

Barlo will be renamed as Osisko Development (spinco) to advance the Cariboo Gold Project and other Canadian and Mexican properties, with near-term gold production target of over 100,000 ounces per year from Bonanza Ledge II and the San Antonio Gold Project, followed by production from the company's flagship Cariboo asset.

Osisko royalties will retain certain royalty or stream interests.

As part of the takeover, Osisko and Barolo have entered into "bought deal" private placement of 13.35M subscription receipts of Spinco at C$7.50 for gross proceeds of C$100M.

Underwriters have an option to purchase up to 3.33M additional Subscription Receipts for proceeds of C$25M.

[Pixel8r]

Osisko Gold Royalties Is Due For A Re-Rating

Summary

• Osisko Gold Royalties will spin out its 100%-owned Cariboo gold mine into a new company called Osisko Development Corp. ("ODC").
  
• ODC will also hold Osisko's newly acquired San Antonio gold project, a portfolio of equity positions valued at $116 million, and exploration assets.
  
• The new company is well-funded and will be valued at US$850 million, of which Osisko retains an 88% stake.
  
• Osisko also announced new drill results at Cariboo that are excellent and may lead to a larger resource.
  
• This move is favorable and should lead to a re-rating in Osisko shares, as I explain below.