Business Context and Reporting Period
This Form 6-K filing by Osisko Gold Royalties Ltd (also referenced as OR Royalties Inc.) covers the month of October 2016, specifically reporting on an acquisition dated October 17, 2016. The filing serves as an Early Warning Report under National Instrument 62-103 regarding a significant equity acquisition in QMX Gold Corporation ("QMX").
Key Financial Metrics and Transaction Details
- Transaction Type: Private placement of common shares.
- Acquirer: Osisko Gold Royalties Ltd.
- Target: QMX Gold Corporation.
- Shares Acquired: 15,000,000 common shares.
- Price Per Share: C$0.10.
- Total Consideration: C$1,500,000.
- Post-Transaction Ownership: Approximately 14.7% of QMX's issued and outstanding shares (102,333,887 total).
- Prior Ownership: Osisko held 0% ownership prior to this transaction.
Material Changes
The primary material change is the establishment of a significant equity position in QMX Gold Corporation. Osisko moved from having no ownership or control over QMX shares to holding approximately 14.7% of the company's outstanding equity. This transaction was executed via a private placement rather than on a public stock exchange.
Outlook, Management Commentary, and Risks
Purpose of Acquisition: Osisko stated the shares were acquired for investment purposes.
Future Intentions: Management indicated that Osisko may increase or decrease its ownership interest in QMX depending on market conditions and other investment factors. However, aside from the shares purchased in this transaction, Osisko has no current intention to increase its beneficial ownership or control over additional QMX securities.
Regulatory Exemption: The transaction relied on Section 2.3 of National Instrument 45-106, as Osisko purchased the securities as a principal and is an accredited investor.
Investor Verification Checklist
- Verify the total number of QMX shares outstanding (102,333,887) to confirm the 14.7% ownership calculation.
- Confirm the accreditation status of Osisko Gold Royalties Ltd to validate the regulatory exemption used.
- Monitor future filings for any changes in Osisko's ownership percentage, as they reserved the right to adjust their position based on market conditions.
- Note that this filing does not provide Osisko's consolidated revenue, profit, or cash flow metrics; it is strictly a disclosure of a specific investment transaction.