Victoria Gold Corp. (VIT:TSX.V) announced in a news release that one of its largest shareholders, Orion Mine Finance, will increase its ownership interest in the gold exploration and development company.
To do so, Orion fund Orion Co-VI Ltd., will purchase all of the 154,517,996 common shares of Victoria Gold that Osisko Gold Royalties owns at a purchase price of $0.46 per common share. This price reflects a 15% premium, the maximum allowable in such a case.
The transaction will take Orion's ownership to 318,154,360 common shares, or 37.1% of the issued and outstanding common shares of Victoria Gold.
Orion pursued the deal to "facilitate its renewed equity commitment to the company's strategic direction with respect to the Eagle gold mine," Victoria Gold CEO John McConnell said in the release.
Osisko still has a major economic interest in Eagle through its royalty. Its CEO and chair of Victoria's board, Sean Roosen, will remain on Victoria's board as a director.
Related to the transaction, Orion agreed to new shareholder covenants related to voting and acting on change of control transactions, voting on board members, further purchases of Victoria common shares and dispositions.
"The agreement by Orion to provide these additional covenants will allow Victoria to achieve the maximum benefit from its ongoing partnership with Orion while providing protections to all of Victoria's other shareholders during the initial phases of production at its Eagle gold mine in Yukon," the release noted.[NLINSERT]
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