The Prospector News

Falco Enters Into $10 Million Loan Financing With Osisko Gold Royalties

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

Falco Enters Into $10 Million Loan Financing With Osisko Gold Royalties

 

 

 

 

 

Falco Resources (TSX-V:FPC) is pleased to announce the closing of a financing with Osisko Gold Royalties Ltd. (TSX:OR) whereby Osisko will provide a C$10 million loan. The Loan will be used for the advancement of the Horne 5 Project and for general corporate purposes.

 

 

Luc Lessard, President and Chief Executive Officer of Falco commented: “We are very pleased to benefit from our partnership with Osisko. With this financing now completed, we will work aggressively to advance the development of the Horne 5 Project. This is an important first step in completing the funding necessary to see the Horne 5 Project realized.”

 

 

$10 Million Loan Financing

 

 

Under the terms of the financing, Osisko has provided Falco with a C$10 million loan. The Loan has an 18 month maturity, and interest shall be payable on the principal amount at a rate per annum that is equal to 7%, compounded quarterly, payable upon repayment of the principal amount.

 

 

Silver and/or Gold Stream

 

 

Over the next 18 months, Falco and Osisko shall negotiate in good faith the terms, conditions and form of a silver and/or gold stream agreement which shall be substantially in the form typical for such transaction in the industry, whereby Osisko may provide Falco with a portion of the development capital required to build the Horne 5 Project. In this case, the principal amount of the Loan and any accrued interest will be applied against the Stream deposit.

 

 

At the maturity date, if Falco and Osisko have not concluded a Stream Agreement, the principal amount of the Loan will be converted into a 1% net smelter return royalty on the Horne 5 Project and accrued interests will be paid in cash.

 

 

Under certain events of default, Osisko may, at its option, require the repayment of the principal amount and the accrued interest in cash.

 

 

Investor Relations Consultant

 

 

The Company also wishes to announce that it has retained the services of Renmark Financial Communications Inc. to assist in investor relations activities.

 

 

In consideration of the services to be provided, the Company has agreed to pay a monthly retainer of $5,000 to Renmark Financial Communications Inc.

 

 

Renmark Financial Communications does not have any interest, directly or indirectly, in Falco Resources Ltd. or its securities, or any right or intent to acquire such an interest.

 

 

About Falco

 

 

Falco Resources Ltd. is one of the largest mineral claim holders in the Province of Québec, with extensive land holdings in the Abitibi Greenstone Belt. Falco owns 74,000 hectares of land in the Rouyn-Noranda mining camp, which represents 70% of the entire camp and includes 13 former gold and base metal mine sites. Falco’s principal property is the Horne Mine, which was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. A updated 43-101 mineral resource estimate for the Horne 5 deposit delineated an Indicated Resource of 5,361,000 gold equivalent ounces (“oz AuEq”), including 3,418,232 oz Au hosted in 58.3 million tonnes averaging 2.86 g/t AuEq (1.82 g/t Au; 15.60 g/t Ag; 0.20% Cu; 1.00% Zn) and an Inferred Resource of 1,254,000 oz AuEq, including 854,534 oz Au hosted in 12.7 million tonnes averaging 3.08 g/t AuEq (2.10 g/t Au; 26.26 g/t Ag; 0.22% Cu; 0.57% Zn.) — see January 25th, 2016 press release for details. Osisko Gold Royalties is the largest shareholder of the Company and currently owns 16.2% of the outstanding shares of the Company.

 

 

Posted May 30, 2016

Share this news article

MORE or "UNCATEGORIZED"


GoGold Announces Annual Net Income of $8.1M USD for September 30, 2019

GoGold Resources Inc. (TSX: GGD) (OTCQX: GLGDF) is pleased to ann... READ MORE

December 13, 2019

Lundin Gold Announces First Export of Gold Concentrate and Doré

Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) reports the fi... READ MORE

December 13, 2019

O3 Mining Intersects 9.3 g/t Au Over 6.0 m, Including 25.7 g/t Au Over 1.9 m at Epsilon

O3 Mining Inc. (TSX-V: OIII) is pleased to provide new results fr... READ MORE

December 13, 2019

GT Gold Closes C$8.3 Million Investment by Newmont Goldcorp Corporation

GT Gold Corp. (TSX-V: GTT) is pleased to report that it has close... READ MORE

December 13, 2019

Canada Cobalt Intersects Massive Silver as Castle East Discovery Builds Out

Canada Cobalt Works Inc. (TSX-V: CCW) (OTC: CCWOF) (Frankfurt: 4T... READ MORE

December 13, 2019

Copyright 2019 The Prospector News - Site design by Spyderbaby Productions