On September 23, 2019, Osisko Gold Royalties Ltd (“Osisko”) (OR: TSX & NYSE) announced that it had entered into an Arrangement Agreement with Barkerville Gold Mines Ltd. (“Barkerville”) (TSXV: BGM), pursuant to which Osisko agreed to acquire all of the issued and outstanding common shares of Barkerville, by way of a plan of arrangement (the “Arrangement”) under the Business Corporations Act (British Columbia). Under the terms of the Arrangement, each shareholder of Barkerville will receive 0.0357 (the “Exchange Ratio”) of a common share of Osisko for each share of Barkerville held. The Exchange Ratio implies consideration of C$0.58 per Barkerville share, based on the closing price of Osisko shares on the Toronto Stock Exchange (TSX) on September 20, 2019, representing a 44% premium based on both companies’ trailing 20-day volume weighted average price (VWAP) as at September 20, 2019. The Exchange Ratio implies a total equity value of approximately C$338 million on a fully diluted basis.
A Special Committee of Barkerville’s Board of Directors retained PI Financial Corp. to prepare an independent fairness opinion. Miller Thomson advised PI Financial Corp. with a team that included Geoff Clarke (securities and mining).