NioGold (NOX.V) has announced what might be a pivotal financing deal as it has secured Osisko Gold Royalties (OR.TO) as a new shareholder. Osisko is buying 14 million flow-through shares at a price of C$0.35 which is a big premium over the share price right before the deal was announced. Osisko is playing it smart, as it knows all of these flow-through funds will have to be spent on exploration, thereby limiting the risk NioGold would use it for other purposes.
It’s interesting and exciting to see a new potentially large royalty company taking a direct equity investment in a junior exploration company and this could definitely be seen as a vote of confidence, especially as Osisko Gold Royalties already owned almost 10 million shares.
> Click here to read the press release
Disclosure: The author holds no position in either NioGold or Osisko Gold Royalties. Please see our disclaimer for current positions.
