Wednesday, February 18, 2015

Osisko Gold closes $200.02-million bought deal

2015-02-18 09:46 ET - News Release

Mr. John Burzynski reports

Osisko Gold Royalties Ltd. has closed the bought-deal private placement of special warrants announced on Jan. 21, 2015. Osisko issued a total of 10.96 million special warrants of the corporation at a price of $18.25 per special warrant, representing aggregate gross proceeds of $200.02-million. Each special warrant entitles the holder to acquire, for no additional consideration, one unit of Osisko, with each unit comprising one common share of Osisko and one-half of one common share purchase warrant of Osisko. The special warrants are exercisable by the holders thereof at any time after the closing date of the offering for no additional consideration, and all unexercised special warrants will be deemed to be exercised on the earlier of: (a) the date that is four months and a day following the closing date, and (b) the third business day after a receipt is issued for a (final) prospectus by the securities regulatory authorities in each of the provinces of Canada where the special warrants are sold, qualifying the common shares to be issued upon the exercise or deemed exercise of the special warrants.

The corporation shall use reasonable commercial efforts to obtain a receipt for the final qualification prospectus by the date that is 60 days from the closing date. If the corporation fails to qualify the common shares for issuance in the qualifying provinces by the penalty date, the holders of special warrants will be entitled to receive 1.1 common shares and 0.55 of a warrant without further payment on the part of the holder.

Each full warrant will entitle the holder thereof to purchase one common share of the corporation at a price of $36.50 per common share, for a period of 84 months following the closing date.
The bought deal was completed through a syndicate of underwriters co-led by Macquarie Capital Markets Canada Ltd. and RBC Capital Markets, and included National Bank Financial Inc., BMO Capital Markets, CIBC World Markets Inc., Scotiabank, TD Securities Inc., Cormark Securities Inc., Paradigm Capital Inc. and Edgecrest Capital Corp.
The corporation plans to use the net proceeds from the offering for working capital and general corporate purposes.
We seek Safe Harbor.

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