Victoria Gold Corp. completes financing transactions with Osisko, Orion and Cat Financial

Victoria Gold Corp. entered into a series of definitive financing agreements with Orion Mine Finance (Orion), Osisko Gold Royalties Ltd. (Osisko) and Caterpillar Financial Services Ltd. (Cat Financial) with respect to a construction financing package totaling approximately $505 million in aggregate (the Financing).

The Financing is intended to fully fund the development of Victoria’s Eagle Gold project in Yukon through to commercial production. Eagle is expected to become the largest producing mine in Yukon.

The Financing consisted of: (i) a US$75 million secured senior credit facility provided by Orion; (ii) a US$100 million secured subordinated credit facility provided by Orion; (iii) private placement subscriptions of 150,000,000 common shares by Orion and 100,000,000 common shares by Osisko, respectively, at a price of $0.50 per share for aggregate gross proceeds of $125 million; (iv) the sale of a 5-per-cent NSR royalty on Victoria’s Dublin Gulch property (subject to adjustment and certain exclusions) to Osisko for gross proceeds of $98 million; and (v) a US$50 million equipment finance facility provided by Caterpillar. Victoria also entered into an agreement with Orion with respect to future offtake from the Eagle Gold project.

Victoria Gold was represented by Bennett Jones LLP, with a team led by James Clare and including Ali Naushahi, Christopher Doucet and Bronwynn Shaw (corporate and securities), Cassels Brock & Blackwell LLP, with a team led by David Budd and including Carla Potter, Jenna Clark, Jonathan Fleisher and Hilary Fender (banking and lending); and in Yukon by Graham Lang and Jocelyn Barrett of Lamarche & Lang, Barristers and Solicitors.

Orion was represented in house by Dov Lader, Deputy General Counsel; by Torys LLP with a team led by Mike Pickersgill and including Braden Jebson and Isabella Ssozi (corporate and securities), Tom Zverina, Yinka Olusoga and Selam Ibrahim (banking and lending) and Craig Maurice (tax); and in Yukon by Paul Lackowicz of Lackowicz and Hoffman.

Osisko was represented in house by Andre Le Bel, Vice President, Legal Affairs and Corporate Secretary; by Stikeman Elliott LLP, with a team led by David Massé and including François Gilbert, Léa Bénitah-Bouchard, Jules Dumas-Richard and Philippe Bernier-Cormier; and in Yukon by Greg Fekete of Austring, Fendrick & Fairman.