Osisko Gold Royalties Ltd. agreed to acquire a 15.2% stake in Barksdale Capital Corp. by purchasing 5,833,333 Barksdale shares for C$3.5 million, or 60 Canadian cents apiece.
Barksdale said Dec. 17 that it will use the net proceeds to advance its Sunnyside copper project in Arizona and for general corporate and working capital purposes.
Osisko reached a deal to acquire certain royalties over Sunnyside from an unrelated private vendor.
Osisko will receive a right of first refusal on any proposed royalty, streaming or similar transactions for five years from closing, which is expected by Jan. 4.
The two companies will also enter into a binding investment agreement that will see Osisko gain an equity participation right to maintain pro rata ownership and the right to nominate one person to Barksdale's board of directors as long as Osisko holds at least a 10% stake in Barksdale.