It looks like it’s not just foreign companies that are on the hunt for Canadian gold assets.
Osisko Gold Royalties announced today that it would be acquiring junior gold miner Barkerville Gold Mines in a transaction valued at approximately C$338 million—just one month after Bakerville announced positive results from its independent Preliminary Economic Assessment (PEA) for its Cariboo Gold Project. Barkerville, which is the 100% owner of the Cariboo Gold Project, reached a new 52-week high of $0.56 following news of Osisko’s intent to purchase it. In contrast, Osisko Gold Royalties fell 9.96% from $16.26 to $14.64.
Via Osisko Gold Royalties,
“Sean Roosen, chair of the board and CEO of Osisko, stated: “The addition of the Cariboo Gold project to our portfolio adds a potentially world-class asset in Canada in an impacted brownfield site with significant infrastructure in place.
Osisko and Barkerville will take advantage of their combined mine building, exploration, permitting, development and construction expertise to advance the Cariboo gold project.”
Bakerville’s Cariboo Gold Project, which has a measured and indicated resources of 2.4 million ounces of gold (13.2 million tonnes grading 5.6 g/t Au) and inferred resources of 1.9 million ounces of gold (12 million tonnes grading 5.0 g/t Au), is poised to have a profound effect on B.C.’s Cariboo Region.
Via Newswire,
“[The Cariboo Gold Project’s] PEA foresees a Project that would have a significant economic impact and minimal environmental impact for the Cariboo Region of British Columbia, with the potential of generating over C$3.39 billion of gross revenue and contributing approximately 320 permanent, well remunerated jobs during the production phase, and an additional 120 during the construction phase.”
With some analysts suggesting that gold’s new floor could be $1,450 per ounce, the acquisition of Barkerville could be a sign of things to come for the sector—especially if central banks continue to push the price of gold higher.
