Sirios to buy OVI Mining in $17M deal in Quebec

Sirios Resources (TSXV: SOI) shares soared after it announced its acquisition of private explorer OVI Mining in a northwest Quebec-focused deal worth about C$23 million ($17 million).

The acquisition of OVI, backed by Osisko Development (NYSE, TSXV: ODV) as the company’s largest shareholder, is to combine Sirios’ Cheechoo gold project with OVI’s Corvet Est and Plex, all district-scale assets. All three are located in the Eeyou Istchee James Bay region, about 725 km north of Montreal.

“I see an excellent opportunity to combine forces and put our experience in project development to support Cheechoo, which is a greatly under-appreciated gold project,” Osisko CEO Sean Roosen said. “We are lucky to get to work alongside [Sirios founder Dominique Doucet], who is a long-standing friend of the Osisko founders and the elder statesman of exploration in Quebec’s James Bay.”

Prices spur M&A

The merger comes as gold’s recent high prices have given more impetus to M&A activity by raising the value of existing yellow metal assets.

This year alone in Canada saw Equinox Gold’s (TSX,NYSE-A: EQX) acquisition of Calibre Mining, Royal Gold’s (Nasdaq: RGLD) Sandstorm Gold buy and McEwen’s (TSX, NYSE: MUX) planned purchase of Canadian Gold (TSX: CGC).

The deal also brings into the picture Roosen, a giant of Canadian mining who co-founded Osisko Mining, (TSX: OSK), helped develop Canadian Malartic – the country’s second-largest gold mine under Agnico Eagle Mines (TSX, NYSE: AEM) – and created Osisko Gold Royalties (TSX, NYSE: OR) as part of the Canadian Malartic deal in 2014. He also played a major role in advancing Osisko Development’s Cariboo gold project in British Columbia as well.

Sirios shares jumped to an all-time high of C$0.40 apiece on Friday morning in Toronto, valuing the company at C$63 million ($46 million).

Under the terms of the deal, Sirios will issue 131,905,657 million common shares to OVI shareholders at the offer price of about C$0.17 per OVI share based on the last closing price of Sirios shares on the TSX Venture Exchange. The merger, which will also create a new name for the company, is expected to close in the first quarter of 2026.

“This is an exceptional opportunity to accelerate the development of a promising gold portfolio in Quebec under the Osisko banner,” OVI CEO Jean-Félix Lepage said in a release on Thursday. “Cheechoo is a highly prospective asset that we believe has the potential to become a major gold mine in James Bay, and the exploration upside across Corvet Est and PLEX gives us multiple pathways for growth. We intend to build a major Quebec gold company.”

Private company EE Mining last year spun out OVI’s gold assets to form the new company. Osisko owned about 80% of OVI’s shares and O3 Mining held 20%. OVI hasn’t specified the stake that Osisko currently holds. Roosen has been a senior adviser to OVI.

‘Osisko ecosystem’

The acquisition will bring Cheechoo, Plex and Corvet Est into the “Osisko ecosystem,” a development platform known for financing, advancing and de-risking gold projects in Canada, Sirios said.

Cheechoo hosts 34.9 million indicated tonnes grading 1.12 grams gold per tonne for 1.3 million oz.; and 42.7 million inferred tonnes at 1.23 grams gold for 1.68 million oz. according to an updated resource from July. Cheechoo is near private miner Dhilmar’s Éléonore gold operation.

Plex and Corvet Est have no resources though there has been 21,000 metres of historic drilling at Corvet Est and 38,000 metres at Plex.

Lepage, who was previously vice-president of project development with O3 Mining will become CEO, while Roosen and Vice-President of Strategic Development Laurence Farmer will join the Sirios board. Doucet is to take the executive chair and exploration chief roles.