On July 5, 2019, Osisko Mining Inc., a TSX-listed company, completed a spin out of certain of its non-core assets by way of a reverse takeover of Chantrell Ventures Corp., a TSX Venture Exchange NEX-listed company. The reverse takeover resulted in, among other things, Osisko transferring certain of its non-core assets valued at approximately $99.9 million to Chantrell in exchange for common shares of Chantrell. The transaction proceeded by way of plan of arrangement under the Business Corporations Act (Ontario). In connection with the arrangement, Chantrell continued from British Columbia to Ontario, consolidated its shares on a 40:1 basis, changed its management and board of directors and changed its name to O3 Mining Inc. Concurrent with the closing of the arrangement, the previously-issued subscription receipts of Chantrell converted into post-consolidation common shares and warrants of O3 Mining, and the escrowed proceeds of approximately $18.6 million were released to O3 Mining.
O3 Mining will trade on the TSX-V as a Tier 2 mining company.
Cassels acted for Chantrell with a team comprised of Jeff Durno, Gordon Chambers and David Hansford (Securities and Mining), and John M. Picone and Stephanie Voudouris (Litigation).
This deal earned an honourable mention on Lexpert’s Top 10 Deals of 2019 under the category of Mining Saga. This deal was also nominated for M&A Deal of the Year by the Canadian Law Awards.