Osisko says no plans to acquire Labrador Iron Ore Royalty

Fri May 15, 2015 11:50am EDT
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TORONTO May 15 (Reuters) - Osisko Gold Royalties said on Friday it has no plans to buy Labrador Iron Ore Royalty Corp (LIORC) and that the stake it has built in LIORC is purely for investment purposes.

Osisko Gold Royalties Ltd disclosed earlier on Friday that it has, since the beginning of the year, acquired a 9.75 percent interest in LIORC to diversify from gold production, sending shares in LIORC up more than 8 percent on speculation that Osisko may be thinking of bidding for the whole company.

"We bought it for investment purposes, we bought it at the right price and it provides a good yield for us. It is a liquid asset and it goes a long way in offsetting a significant portion of our own general and administration expenses and provides far better returns than leaving our cash in the bank right now," said Osisko Chief Executive Sean Roosen on Friday.

Roosen told Reuters that he has no "intention of buying the entire company." (Reporting by Euan Rocha and Susan Taylor)