Date Closed

February 17, 2015

Lead Office

Québec City

Value

479.00 Million CAD

On February 17, 2015, Osisko Gold Royalties Ltd ("Osisko") announced the close of its acquisition of smaller rival Virginia Mines Inc ("Virginia") for C$479 million, creating a C$1.3 billion company that owns royalty interests in two major gold mines in the province of Quebec.

The deal will give Montreal-based Osisko, which already owns a royalty in the Canadian Malartic asset, a royalty interest in Goldcorp Inc's Éléonore mine, which began production last year. Éléonore is ramping to 600,000 of gold ounces annually by 2018 and Canadian Malartic is currently producing about 525,000 ounces of gold annually.

Osisko is paying 0.92 of an Osisko share for each share in Virginia, valuing the company at C$14.19 a share. The deal, unanimously approved by both boards, is also being backed by a cash injection from two big Quebec funds Caisse de Depot et Placement du Quebec and Fonds de Solidarite des Travailleurs du Quebec. 

McCarthy Tétrault LLP represented Virginia in the transaction, with a team led by Philippe Leclerc (M&A and Securities) that included Myreille Gilbert (M&A and Securities), François Amyot (Contract matters),  Christian Meighen (Tax), Dominic Thérien (Competition) and Jean Lortie (Litigation).