Osisko Gold Royalties (TSX: OR) this morning announced in conjunction with Barolo Ventures (TSXV: BVC) that they have completed the previously announced bought deal private placement for gross proceeds of C$100 million. As previously released, Barolo is being utilized by Osisko for the purpose of a reverse takeover transaction.
Under the proposed RTO, Osisko will be vending certain assets into Barolo, whom will be renamed Osisko Development Holdings. Chief among those assets are the Cariboo Gold project located in Barkerville, BC, as well as the San Antonio Gold Project, located in Sonora, Mexico. The latter of which is focused on a prospective IOCG deposit, with a past producing mine located on the property.
The bought deal finaning saw a total of 13,350,000 subscription receipts sold at a price of $7.50 per receipt. Each subscription receipt will result in the holder receiving one common share of Barolo, and one half of a warrant, after giving effect to a consolidation of Barolo. Each warrant is good for a period of 18 months following the completion of the RTO, at a price of $10.00 per share.
Funds from the financing have been placed into escrow, with funds to be released upon completion of the reverse takeover transaction. If the transaction is not completed by January 31, 2021, funds are to be returned to the holders of the receipts, with the receipts being cancelled. Funds raised, upon release, are to be used to capitalize the resulting issuer.
Further details on the timeline for closing of the transaction were not provided.
Information for this briefing was found via Sedar and Osisko Gold Royalties. Not a recommendation to buy or sell any securities. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
