The Caisse de dépôt et placement du Québec is helping precious metal royalty company Osisko Gold Royalties Ltd. expand its portfolio by buying assets from Orion Mine Finance Group.
Quebec-based company Osisko is buying 74 royalties, stream and previous metal offtakes from Orion for $1.125 billion and boosting its portfolio up to a total of 131 royalties and streams, according to a news release.
Caisse is investing $200 million in Osisko while Fonds de solidarité FTQ is putting forward $75 million. The investments will help Osisko pay Orion $675 million in cash and $450 million in Osisko shares.
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“With this additional investment, la Caisse is enabling Osisko, whose well-known and experienced team has proven itself on the Canadian market, to expand its asset portfolio and better position itself on global markets,” said Christian Dubé, executive vice-president, Quebec at Caisse.
“This transaction is part of our commitment to remain a key player in the mining sector in Quebec, supporting businesses at all stages in order to foster the development of tomorrow’s leading companies.”
As part of the agreement, Osisko will gain interest in the Renard diamond mine in Quebec, Brucejack gold and silver mine in British Columbia and the Mantos Blancos mine in Chile, said Sean Roosen, chair and chief executive officer at Osisko, in a release.
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“. . . 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 [gold equivalent ounces] annually by 2023, without compromising its focus on gold and precious metals from properties located principally in North America,” said Roosen.