Overview the Acquisition of Virginia Mines Inc.
Osisko is a Canada-based intermediate mining royalty and exploration public company traded on the Toronto Stock Exchange. They acquired Virginia Mines Inc. with an acquisition date of February 17, 2015 by acquired all of the outstanding common shares of Virginia and issued a total of 29,964,240 common shares to Virginia shareholders (share exchange method). This acquisition diversifies the portfolio of assets in low geopolitical risk locations and improves the financial position of the new combined company. Other purchase consideration paid by Osisko including share options and the common shares hold by Osisko prior to the closing date. The fair value of purchase consideration is (provisional) $556,034. As a public company, Osisko is required to prepare financial statements according to IFRS. They have recognized this acquisition as a business combination, and they have combined Virginia’s financial statements to their own and issued combined financial statements according to IFRS because as parent company, they have control over Virginia by acquire all of their outstanding shares. According to IFRS, the accounting policies applied in Q1 2015 consolidated financial statements are consistent with those applied by Osiska before business combination. Osisko Gold Royalties is the Acquirer and parent company because their shareholders control the combined economic entity, and Virginia Mines Inc. is the acquiree and subsidiary company. Mines Coulon Inc. was a subsidiary that was acquired in Virginia acquisition. The interests of Mines Coulon were recognized as non-trolling interests of the combined company, which are shown on both Consolidated Balance Sheet and Consolidated Statements of Income (Loss). The acquisition – related costs are expensed as incurred. The company is still in their measurement period, in their Q1,