A cash-cum-stock deal worth USD $840m has been struck between Orion Mine Finance Group and Osisko Gold, in which Canada-based Osisko will acquire Orion’s precious metals portfolio.
Osisko will pay $334m worth of shares and $501m in cash to Orion’s stakeholders in exchange for the portfolio of 61 royalties, six streams and seven precious metal offtakes.
This acquisition is set to transform Osisko into “one of the world’s leading gold-focused royalty and streaming company”, according to the firm.
CEO and Chair of Osisko, Sean Roosen said, “Combining these tremendous assets from Orion Mine Finance together with Osisko’s existing portfolio will set the stage for the Company to earn over 140,000 GEOs annually by 2023, without compromising its focus on gold and precious metals from properties located principally in North America.”
Orion founder and chief investment officer, Oskar Lewnowski said, “As one of the largest investors dedicated to the mining industry, I am proud to say Orion has been able to build a uniquely top-tier, diversified royalty portfolio with a stellar cash flow growth profile.”
“We are confident Osisko’s management team has the expertise to ensure that, when combined, our complementary asset bases ultimately deliver transformational results for shareholders and we are excited to participate in that upside.”