Canada-based Osisko Gold Royalties has agreed to acquire a precious metals portfolio of assets from Orion Mine Finance Group for C$1.125bn ($840m) in a cash-cum-stock deal.
The portfolio to be acquired comprises 74 assets made up of 61 royalties, six streams and seven precious metal offtakes. For this, Osisko will pay C$675m ($501m) in cash and C$450m ($334m) worth shares to the stakeholders of Orion.
According to Osisko Gold, the acquisition of the assets is expected to transform it into one of the world's leading gold-focused royalty and streaming company.
Post acquisition, the combination would take the Osisko’s royalties and streams to 131 which would include 16 revenue-generating assets.
Among the key additions to its portfolio would be a 4% gold and silver stream on the Brucejack gold and silver mine, a 9.6% diamond stream on the Renard diamond mine, all located in Canada. Additionally it will also get access to a 100% silver stream on the Chile-located Mantos Blancos copper mine.
Osisko says that its flagship asset despite the acquisition will be the 5% net smelter return (NSR) royalty on the Canadian Malartic gold mine. The 2 to 3.5% NSR royalty on the Éléonore gold mine in Quebec follows it as a cornerstone asset for Osisko.
Osisko Chair and CEO 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."
The acquisition is also expected to diversify the present cash flowing asset base of Osisko while boosting its development and exploration pipeline.
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."
Image: The Canadian Malartic gold mine owned by Osisko Gold Royalties. Photo: courtesy of Osisko Gold Royalties Ltd.