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Osisko Gold Royalties Announces Spin-Out of Mining Assets and Creation of a Premier North American Gold Development Company
Formation of Osisko Development Corp. to Advance the Cariboo Gold Project and Other Canadian and Mexican Properties Concurrent CDN $100 Million Bought Deal Equi
About this update from Or Royalties Inc.
[{"type":"text","content":" Formation of Osisko Development Corp. to Advance the Cariboo Gold Project and Other Canadian and Mexican Properties Concurrent CDN $100 Million Bought Deal Equity Offering with Strong Institutional Shareholder Support MONTRÉAL, Oct. 05, 2020 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (\"Osisko Royalties\") (OR: TSX & NYSE) and Barolo Ventures Corp. (\"Barolo\") (BVC.H: TSX-V) are pleased to announce that they have entered into a binding letter agreement dated October 5, 2020 (the \"Letter Agreement\") outlining the terms upon which Osisko Royalties will transfer certain mining properties (or securities of the entities that directly or indirectly own such mining properties), including the Cariboo Gold Project, and a portfolio of marketable securities valued at approximately CDN $116 million, to Barolo in exchange for common shares of Barolo (\"Barolo Shares\"), which will result in a \"Reverse Take-Over\" of Barolo (the \"RTO\") under the policies of the TSX Venture Exchange (the \"TSX-V\"). In this news release, references to the \"Resulting Issuer\" or \"Osisko Development\" are to Barolo after the closing of the RTO. As part of the RTO, Osisko and Barolo have also entered into an engagement letter dated October 5, 2020 with Canaccord Genuity Corp. and National Bank Financial Inc., on behalf of a syndicate of underwriters (collectively, the \"Underwriters\"), pursuant to which the Underwriters have agreed to sell, on a \"bought deal\" private placement basis, 13,350,000 subscription receipts of Spinco (as defined herein) (the \"Subscription Receipts\") at a subscription price of CDN $7.50 per Subscription Receipt (the \"Issue Price\") for gross proceeds of CDN $100 million (the \"Financing\"). In addition, the Underwriters have been granted an option (the \"Underwriters' Option\"), exercisable in whole or in part up to 48 hours prior to the closing of the Financing, to purchase up to 3,333,335 additional Subscription Receipts at the Issue Price for additional gross proceeds of up to approximately CDN $25 million. Each Subscription Receipt entitles the holder thereof to receive, for no additional consideration and without further action on the part of the holder thereof, on or about the date that the RTO is completed, one common share of the Resulting Issuer after giving effect to a 60:1 consolidation of the common share...