Canadian company, Osisko Gold Royalties (NYSE:$OR), made the decision to purchase a precious metals portfolio from the Orion Mine Finance Group, which is a US private equity firm, for Cdn$1.13 billion (roughly $834 million). This caused shares in Osisko Gold to jump drastically. Within this metals portfolio are 74 royalties, streams, and precious metal offtakes. According to a statement released by Osisko Gold Royalties, this acquisition will cause Osisko to hold 131 royalties and streams, including 16 assets that generate revenue.
In Toronto, Osisko Gold Royalties stock was trading up 9.7% to Cdn$15.80 and nearly 9.9% higher in New York to $11.72 at around 11:15 ET following the news of the acquisition. This allows Canada’s Osisko Gold to extend its gold, diamond, and silver asset base.
Osisko was created following the June 2014 acquisition of Osisko Mining by Yamana Gold (TSE:$YRI) and Agnico Eagle Mines (TSE:$AEM), and they have agreed to pay Orion $675 million in cash, while the remaining $450 million will be paid in company shares for the assets.
This agreement gives Osisko a 9.6% diamond stream on the Renard diamond stream as well as a 4% gold and silver stream on Canada’s Brucejack gold and silver mine. Additionally, the Canadian company will have a 100% silver stream on Chile’s Mantos Blancos copper mine in Chile.
That said, Osisko’s flagship assets are going to continue to be the 5% net-smelter return royalty on Canada’s largest producing gold mine, the Malartic mine. In addition, there will be its 2% to 3.5% NSR royalty on the Éléonore gold mine in Quebec.
If you are new to silver investing or gold investing, it’s important to note that Osisko is a royalty company. This means that Osisko seeks contracts which give them the right to a share of income from mines being operated by other companies.
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