Good news 08:32 AM EDT, 03/17/2022 (MT Newswires) -- Osisko Gold Royalties Ltd (TSX and NYSE: OR) said Thursday its subsidiary Osisko Bermuda Ltd has signed a binding agreement with Metals Acquisition Corp. (NYSE: MTAL) for a US$90 million silver stream to support the blank check company's purchase of the CSA mine in New South Wales, Australia.
Osisko Bermuda has also provided Metals Acquisition, which is acquiring the owner of CSA from a subsidiary of Glencore plc for US$1.1 billion, with an option to draw up to an additional US$100 million in upfront proceeds through the sale of a copper stream.
Osisko Gold, whose shares edged about 0.9% higher in US pre-market trading on Thursday, said Osisko Bermuda has also agreed to subscribe for US$15 million in equity of Metals Acquisition as part of a concurrent equity financing.
Closing of the silver stream and equity subscription is expected in the second half of 2022, Osisko Gold said.
"The acquisition of a silver stream on CSA meets all of Osisko's stringent acquisition criteria," said Sandeep Singh, President and CEO of Osisko. "The stream will provide long-life precious metals cash flow in a top tier jurisdiction at an attractive return."