Osisko Metals Incorporated (TSX-V:OM) (FRANKFURT:OB5) is pleased to announce that it has entered into an agreement with Osisko Gold Royalties Ltd whereby Osisko Gold will acquire a 1% net smelter return royalty on Osisko Metals’ current portfolio of projects within both the Bathurst Mining Camp and Quebec, for a cash consideration of C$5 million. The acquired royalty will also apply to areas that Osisko Metals may acquire in the future that fall within a one kilometer distance from their current property holdings. Osisko Gold will also acquire existing royalty buy-back agreements on current projects and will hold rights of first refusal on any future royalty or metal stream sale from existing or newly acquired properties by Osisko Metals.
The current Agreement is expected to close on or around October 18, 2017, subject to regulatory approvals. Osisko Gold Royalties Ltd is considered as an insider and the Corporation intends to rely on exemptions from the “formal valuation” and “minority approval” requirements of MI 61-101 in respect of the “related party transaction”.
Jeff Hussey, President and CEO of Osisko Metals, stated: “This royalty financing with Osisko Gold Royalties represents the final stage of 2017 financings, all successfully completed since listing Osisko Metals last June. The Company has now raised a total of C$41.5 million to implement new acquisitions, exploration and drilling programs, mostly within the BMC. Osisko Gold’s investment in our Company underlines their confidence in our ability to upgrade and expand the slate of historical zinc-lead-copper deposits in our BMC properties into NI43-101 compliant resources, and to further increase shareholder value through strategic property acquisitions.”
About Osisko Metals
Osisko Metals is a Canadian exploration and development company creating value in the base metal markets with an emphasis on the zinc space. In 2017, the Company acquired over 50,000 hectares in the Bathurst Mining Camp. The objective is to develop a multi-deposit asset base that would feed a central concentrator. In parallel, Osisko Metals is monitoring several base metal oriented peers for projects hosting zinc, copper, and nickel for acquisition opportunities. In Québec, the Company acquired 42,000 hectares that cover 12 grass-root zinc targets that will be selectively advanced through exploration. Osisko Gold Royalties Ltd and Osisko Mining Inc. are significant shareholders of the Company, with Osisko Gold Royalties currently holding a 12.8% interest.
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