Can anyone explain what they think is the most likely scenario in terms of the debenture this year?
It always seemed unlikely that OSK would be genuinely interested in a 50/50 JV (sure enough it fell through). Looks like OSK is in the driver seat in terms of options though - excerpt from Nov 2021 news release:
***the question is for serious people here - NOT the f**kwit from BTR board who keeps insisting and hoping OSK will buy their mill.
Toronto, Ontario (November 30, 2021) – Osisko Mining Inc. (TSX:OSK) (“Osisko“) announces that it has signed an agreement for a private placement of $154 million in a convertible senior unsecured debenture due December 1, 2025 (the “Debentures“) with Northern Star Resources Limited (“Northern Star“). The Debenture bears interest at a rate of 4.75% per annum payable semi-annually in arrears, which may be accrued at the option of Northern Star. In addition, Osisko and Northern Star have agreed to negotiate, on an exclusive basis, the terms of an earn-in and joint-venture on up to a 50% interest in Osisko’s Windfall Project.
The Debenture may be converted by Northern Star at any time after the first anniversary of closing, subject to acceleration in the event of a change of control, at a conversion price (the “Conversion Price“) equal to $4.00 per common share of Osisko (“Common Shares“). Upon entering into the earn-in and joint venture agreement, Northern Star may convert the Debenture into an interest in the property at a conversion premium of 125%.
In addition, the Debenture may be redeemed by Osisko at any time after the second anniversary of closing for cash or Common Shares (provided that the volume weighted average trading price of the Common Shares are not less than 125% of the Conversion Price for the twenty consecutive trading days ending five days prior to the notice of redemption). The Debenture is subject to standard anti-dilution, events of default and early payment penalty provisions. In the event of an announced change of control transaction, the Debenture may be accelerated and converted into Common Shares at the Conversion Price or a proportionate interest in the Windfall Project.