Canadian precious-metals mining company Osisko Mining has signed a definitive agreement to acquire Canada-based gold mineral explorer and developer Barkerville Gold Mines.

Osisko will purchase all the issued and outstanding common shares of Barkerville.

Each shareholder will receive 0.0357 of a common share of Osisko in exchange for each share of Barkerville.

Osisko CEO and chair of the board Sean Roosen said: “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.

“Osisko expects to fund planned work through available liquidity, future revenue from royalties and streams, project debt, as well as outside private equity and joint venture capital through the creation of the North Spirit Discovery Group.”

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Osisko also announced the creation of the North Spirit Discovery Group to privatise its resource development projects.

Last year, Osisko generated $82.2m in operating cash flow at 89.5% cash margin, while it generated $46.1m at 89.5% cash margin in the first six months of this year.

The company currently has more than $800m in financial capacity, which includes a $500m available revolving debt facility.

In August last year, Osisko Mining signed a definitive arrangement agreement to acquire all issued and outstanding common shares of mineral exploration company Beaufield Resources.