Proactiveinvestors United Kingdom Virginia Mines https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Virginia Mines RSS feed en Tue, 16 Jul 2019 21:33:01 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Osisko Gold Royalties buys Virginia Mines to create enlarged gold royalty business ]]> https://www.proactiveinvestors.co.uk/companies/news/104240/osisko-gold-royalties-buys-virginia-mines-to-create-enlarged-gold-royalty-business-58198.html Osisko Gold Royalties (TSE:OR) is acquiring Virginia Mines (TSE:VGQ) in an all-share deal designed to create a new, large royalty company with two major gold royalty assets in Quebec.

The deal will combine Osisko's 5 percent net smelter return royalty (NSR) on the famous Canadian Malartic mine, and Virginia's sliding scale 2.2 to 3.5 percent NSR royalty on the Eleonore mine. Both royalties cover the land packages surrounding the mines, as well as the operating mines themselves. 

Under the terms of the transaction, Virginia shareholders will get 0.92 Osisko shares for each Virginia share held, representing a price of C$14.19 per Virginia share based on Osisko's closing price on Friday, November 14.

The companies said the value implies a 41 premium to Virginia's closing price as of the same date. Once the deal is closed, Osisko shareholders will hold 61 percent of the new entity, while Virginia stockholders will hold the remainder.

The new company, which will be based in Montreal, will be called Osisko Gold Royalties, and will have a total market cap of some C$1.3 billion.

Both parties said the combination will benefit as they each have complementary asset portfolios, with significant land in three mining friendly North American regions and 100 percent exposure to gold. The combined portfolio will be made up entirely of royalties, with no streams, they noted.

The new company will also have a strong balance sheet, Osisko said, with some C$270 million in cash, with the ability to return capital to shareholders.

"Shareholders of both companies will benefit from increased diversification, superior trading liquidity, a strong balance sheet and a heightened ability to compete for future growth opportunities in the royalty business," said chairman and CEO of Osisko, Sean Roosen.

"Our teams complement each other and we look forward to integrating their respective skillsets to fuel the future growth of our company."

The Canadian Malartic mine began commercial production in May 2011, and is currently producing about 525,000 ounces of gold per year. The Eleonore mine had its first gold pour in October, and is expected to ramp up to 600,000 ounces of gold output by 2018.

The deal still requires shareholder and regulatory approvals, with shareholder meetings to take place in January, after which closing is expected. So far, 25 percent of Osisko shareholders have agreed to vote in favour of the deal, while 30 percent of Virginia stockholders have locked up their shares.

Virginia's CEO, Andrew Gaumond, will be appointed senior VP of northern development and exploration at the new company, and will head the Quebec exploration team together with Paul Archer.

Shares of Virginia Mines surged over 39 percent to C$14.03 on Monday in Toronto. Osisko Gold edged down 0.4 percent to C$15.36. 

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Mon, 17 Nov 2014 13:35:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/104240/osisko-gold-royalties-buys-virginia-mines-to-create-enlarged-gold-royalty-business-58198.html
<![CDATA[News - Virginia Mines enters strategic exploration alliance with Wemindji Exploration in Quebec ]]> https://www.proactiveinvestors.co.uk/companies/news/68970/virginia-mines-enters-strategic-exploration-alliance-with-wemindji-exploration-in-quebec-8064.html Cash rich exploration outfit Virginia Mines (TSX:VGQ) has inked a strategic alliance that will allow it to tap into a huge package of exploration ground in Quebec. The alliance, with Wemindji Exploration, covers 5,000 square kilometers of ground pegged by Wemindji.


Wemindji Exploration is a private company established in 1998 by the Cree Nation of Wemindji to set-up a training program in prospecting and advance mineral exploration.


“Both companies will jointly carry out geological reconnaissance, sampling, and exploration work,” Virginia noted, “Work will be done on a 50-50 basis with Virginia being the operator. The first phase of reconnaissance work should start very soon and will benefit from a total budget of $100,000.”


Virginia Mines has a strong track record of exploring in Quebec, and has one of the strongest balance sheets of any junior exploration company listed in Canada, with working capital of C$45 million.


The company`s most prized asset is a 2.2% production royalty on the Éléonore project in the James Bay region which is being advanced by Goldcorp.   Éléonore hosts 9.4 million ounces of gold (3.15 million ounces of measured and indicated resources and 6.25 million ounces of inferred resources), and is currently at pre-feasibility stage. 


Goldcorp is also paying Virginia Mines C$100,000 per month.

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Wed, 01 Sep 2010 15:03:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/68970/virginia-mines-enters-strategic-exploration-alliance-with-wemindji-exploration-in-quebec-8064.html
<![CDATA[News - Virginia Mines Starts 16,500 Meter Drilling Programme across Six Gold Projects in Quebec ]]> https://www.proactiveinvestors.co.uk/companies/news/71528/virginia-mines-starts-16500-meter-drilling-programme-across-six-gold-projects-in-quebec-3031.html Virginia Mines Inc. (TSX: VGQ) announced it has begun several drilling programs on its gold projects in James Bay, Quebec. Virginia will conduct a total of six drilling programs within the next six months. Across the six projects Virginia intends to drill a total of 16,500 meters.


Virginia Mines is among the most active exploration companies in Quebec, the company is primarily concentrated on its numerous properties which are spread over the vast, unexplored regions of northern Quebec.


The drlling will take place on the company’s 100% owned Poste Lemoyne Extension, La Grande Sud, Lac Pau and Anatacau-Wabamisk projects. Through its partnership with Odyssey Resources (TSX-V: ODX), Virginia also plans to begin drilling on the Auclair and FCI gold projects.


The Poste Lemoyne Extension property is host to the Orfee zone which contains resources totalling 88,588 tonnes grading 9.44 grams per tonne gold in the measured category and 114,895 tonnes grading 18.4 grams per tonne gold in the inferred category.


The drilling program will test several new gold showings discovered at surface during the 2008 and 2009 summer field programs. The drilling will cover a minimum of 20 drill holes totalling more than 2,500 metres. The new gold occurrences yielded values of up to 52 g/t Au in grab samples and up to 20.98 g/t Au over 2 metres in channel samples and are spread over more than 37 kilometres along an auriferous corridor.


At Virginia’s La Grande Sud project, the company has begun an eight holes program which is intended to total 2,150 metres. La Grande Sud property is host to the Zone 32 gold-copper mineralization which reported 4.2 million tonnes at 2.1 grams per tonne gold and 0.2% copper in the spring of 1999.


The drilling program will mainly test the possible extensions of Zone 30 that has historically yielded several auriferous intersections of varying lengths grading between 3.89 grams per tonne and 13.5 grams per tonne. The drilling program will also test other targets on the property.


At the company’s Lac Pau property a 3000-metre drilling program is scheduled for the first quarter of 2010. The drilling program will mainly test the Tricorne, Beausac-2 and Obiwan gold showings as well as several other geophysical targets.


Surface work carried out on the Lac Pau project highlighted a significant gold system that includes these showings in addition to other smaller showings. To date the system is traced over 12 kilometres and the system remains totally open laterally.


On the Anatacau-Wabamisk property a 2500-metre drilling program will test mainly the Isabelle gold showing and several geophysical targets situated in the same geological environment. The drilling program will test mainly the Isabelle gold showing and several geophysical targets situated in the same geological environment. Channel sampling of new extensions were conducted in the summer of 2009. According to Virginia the sampling yielded very encouraging results, which included several grades up to 22.97 grams per tonne gold over 2 metres.


Virginia owns 100% interest in the Wabamisk property and has the option to acquire 100% participating interest in the Anatacau property from IAMGOLD (AMEX: IAG) in exchange for $3 million in exploration work to be carried out before 31st December 2012.


Elsewhere in Quebec, Virginia’s other projects are being explored through a partnership with Odyssey Resources (TSX-V: ODX). At both the Aucliar and FCI projects Virginia has optioned half the participating interest to Odyssey subject to combined cash payments totalling $280,000 within three year and exploration investments at each project over the next six years, the combined exploration investment equals $9 million. Under the agreement, Virginia will be the operator of both work programs.


At the Auclair project the partnership is planning a 5000-metre drilling programme. The Auclair project covers a 20-kilometre-long, folded banded iron formation (BIF) at the eastern tip of the Eastmain greenstone belt.

According to Virginia, the Auclair project is in a similar geological setting to the large Musselwhite gold mine in northern Ontario.


So far previous work including till sampling and diamond drilling has revealed several gold showings with varying grades. The drilling program will test several zones of structural complexities affecting the BIF in the interpreted source areas of the gold dispersion trains as well as other targets.


Virginia and Odyssey also plan to conduct a 3500-metre drill program on the FCI project, the FCI project covers 35 kilometres of ‘favourable geology’ within the Guyer greenstone belt. To date, several gold showings have been discovered across the entire length of the property. According to Virginia, a significant gold-in-till anomaly of up to 123 gold grains remains unexplained along a fertile volcano-sedimentary contact.


The drilling program will test the lateral and vertical extensions of the project’s Golden Gap showing, which Virginia believes the probable source area of the gold-in-till anomaly, as well as a few other gold and polymetallic targets.

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Wed, 18 Nov 2009 14:56:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/71528/virginia-mines-starts-16500-meter-drilling-programme-across-six-gold-projects-in-quebec-3031.html
<![CDATA[News - Virginia Mines starts 2009 exploration work across Quebec projects ]]> https://www.proactiveinvestors.co.uk/companies/news/70455/virginia-mines-starts-2009-exploration-work-across-quebec-projects-1642.html Gold-focused Virginia Mines Inc (TSX: VGQ) said it is about to begin 2009 exploration work on several of its numerous projects in Quebec, either alone or with its partners, and will contribute about C$3.8 million of the total C8.5 million budget.

The Poste Lemoyne Extension, Anatacau-Wabamisk, La Grande Sud and Noella-Nichicun projects will be the object of work programs totalling about C$4 million. Diamond drilling is scheduled this fall on the Poste Lemoyne, Anatacau-Wabamisk and La Grande Sud projects.

Additional drilling programs on other projects will depend on results of this summer's work programs.

Virginia and its partners will also spend about C$2.5 million on several other projects including Corvet Est (Goldcorp Inc.), Gayot and Trieste (Breakwater Resources Ltd.), FCI and Auclair (Odyssey Resources Ltd.), Assinica (MacDonald Mines Exploration), Generation Grenville (SOQUEM) and 24L Belts (Nunavik Mineral and Exploration Fund). At this stage, diamond drilling is also planned on the Auclair and Generation Grenville projects.

A budget of over C$1 million, will also be spent alone by Virginia to prospect and test new targets spread over the James Bay territory.

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Wed, 10 Jun 2009 15:02:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/70455/virginia-mines-starts-2009-exploration-work-across-quebec-projects-1642.html
<![CDATA[News - Virginia Mines sells Dieppe Property to Agnico Eagle for shares ]]> https://www.proactiveinvestors.co.uk/companies/news/70401/virginia-mines-sells-dieppe-property-to-agnico-eagle-for-shares-1565.html
Agnico Eagle will issue a further $1 million in shares if it reports an indicated resource of 1 million ounces on the property.



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Wed, 27 May 2009 14:17:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/70401/virginia-mines-sells-dieppe-property-to-agnico-eagle-for-shares-1565.html
<![CDATA[News - Virginia Mines acquires Coulon Joint Venture Property from Breakwater Resources ]]> https://www.proactiveinvestors.co.uk/companies/news/69708/virginia-mines-acquires-coulon-joint-venture-property-from-breakwater-resources-0736.html
Virginia Mines will issue approximately 1.66 million shares to Breakwater Resources, and will also complete the resale of the equity at a price of C$2.85 per share for a total consideration of C$4.75 million. Breakwater Resources will not retain any royalty over the project.

The Coulon property includes 3,035 mineral titles covering a surface area of 1,507 square kilometres, and includes seven mineralized lenses of Copper-Zinc-Silver.

A resource inventory is planned to be completed in the first quarter of 2009.
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Thu, 11 Dec 2008 00:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/69708/virginia-mines-acquires-coulon-joint-venture-property-from-breakwater-resources-0736.html