Osisko Gold Royalties Ltd (TSX:OR) (NYSE: OR) is pleased to announce that it has increased its net smelter return royalty on the world-class Windfall gold project currently being developed by Osisko Mining Inc.
Pursuant to its investment agreement with Osisko Mining dated August 25, 2015, the Company has exercised its right to repurchase six existing royalties on the Windfall Project. The royalties were purchased for total consideration of C$3,000,000 cash, and have increased the Company’s effective NSR royalty on the claims covering the Windfall Project to 2.0 – 3.0%, up from 1.0% – 1.5%.
Sandeep Singh, President of Osisko stated: “We are very pleased with today’s announcement, which highlights the benefits of Osisko’s unique and potent accelerator model. The exercise of Osisko’s right to repurchase existing royalties, at cost, represents an excellent transaction for Osisko covering a vast area in an emerging world-class Canadian mining camp. We would also like to extend our congratulations to the Osisko Mining team as they continue to deliver exceptional results; we believe that the Windfall project will deliver substantial benefits to the province of Québec, the area’s First Nations communities and our respective shareholders.”
About the Windfall Project
The ongoing drill program at Windfall started in October 2015 and has included over 900,000 metres of reported drilling to date from approximately 3,000 holes. The program is currently focused on infill drilling and expansion drilling at the Lynx deposit, exploration on the main mineralized zones, and deep exploration in the central areas of the mineralized intrusive system. The global resource reported at Windfall includes 2,874,000 tonnes averaging 8.17 g/t Au for 754,000 indicated ounces gold, and 10,352,000 tonnes averaging 7.11 g/t Au for 2,366,000 inferred ounces gold (see November 27, 2018 Press Release). Results from processing 5,716 tonnes mined from Lynx in 2019 (the “bulk sample”) exceeded expectations, returning an average grade of 17.8 g/t Au (see December 11, 2019 Press Releases).
About Osisko Gold Royalties Ltd
Osisko Gold Royalties Ltd is an intermediate precious metal royalty company that holds a North American focused portfolio of over 135 royalties, streams and precious metal offtakes. Osisko’s portfolio is anchored by its 5% NSR royalty on the Canadian Malartic Mine, the largest gold mine in Canada. Osisko also holds an equity portfolio of publicly traded resource companies, including a 15.9% interest in Osisko Mining Inc., a 17.9% interest in Osisko Metals Incorporated and a 19.9% interest in Falco Resources Ltd.
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We acknowledge the [financial] support of the Government of Canada.