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Strategies & Market Trends : Dino's Bar & Grill

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To: Goose94 who wrote (68154)	9/23/2019 2:02:30 PM
From: Goose94	Read Replies (1) of 202922

Osisko Gold Royalties (OR-T) shares tumble after it proposes all-shares Barkerville Gold Mines (BGM-V) takeover Sept 23, '19 Shares in Osisko Gold Royalties Ltd. fell by almost 10 per cent Monday after it announced a deal to buy the shares of Barkerville Gold Mines Ltd. it doesn't already own. Osisko, which has a 32.6 per cent stake in Barkerville, says the deal will give it a larger role in advancing and developing Barkerville's Cariboo gold project in British Columbia. The Montreal-based mining company also announced it was creating the North Spirit Discovery Group to privatize and surface value in resource development projects. Osisko shares slipped to as little as $14.67 from Friday's close of $16.26 after it announced it would issue 0.0357 of a common share of Osisko for each Barkerville share. Barkerville shares rose by as much as 21.7 per cent to 56 cents before drifting lower. Osisko says the ratio implies a value of 58 cents per Barkerville share, representing a 44 per cent premium based on both companies' trailing 20-day volume weighted average price, thus valuing Barkerville at $338 million. Analyst Andrew Kaip of BMO Capital Markets says the deal is accretive but it increases risk by adding a project developer role for Osisko. "Positively, management reiterated (Osisko) will remain a royalty/streaming company but, in our view, the move may not resonate with some investors, as it adds risk and uncertainty to what is supposed to be a safe business model," he wrote. The transaction if completed would result in Barkerville shareholders holding about nine per cent of Osisko's equity.

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