Osisko Metals Incorporated (TSX-V: OM) (OTCQX: OMZNF) (FRANKFURT: 0B51) announces that the Board of Directors has appointed Mr. Robert Wares as Chief Executive Officer of the Company and Mr. Jeff Hussey as Chief Operating Officer. Mr. Wares will also maintain his role as Chairman and Mr. Hussey will continue to serve as President of the Company.
Mr. Robert Wares commented: “The fine-tuning of these senior roles will improve efficiencies, allowing Mr. Hussey to concentrate on operations at the Pine Point Project as we move towards more advanced exploration and development, while I focus on marketing, goal-setting and corporate strategies. I would like to take this opportunity to thank staff, Board members and shareholders for their support as we advance one of Canada’s premier zinc projects.”
The Company also announces that it has completed the sale of a 1.5% net smelter return royalty on the Company’s 100%-owned Pine Point Project to Osisko Gold Royalties Ltd, as previously announced in the Company’s December 3, 2019 news release disclosing the signing of a binding term sheet between Osisko Metals and Osisko Gold Royalties.
Pursuant to the terms of the Agreement, in connection with the sale of the NSR, the Company has received a cash consideration of $C6.5M and has granted to Osisko Gold Royalties a right of first offer on any future sales by the Company of any additional royalties, streams or similar interests on the Pine Point Project. The Company’s obligations in relation to the NSR are secured by a continuing senior secured interest on the Pine Point Project.
Related Party Transaction and Early Warning Report
The sale of the NSR and the previously announced acquisition of Units by Osisko Gold Royalties (see December 12, 2019 news release), constitutes a “related party transaction”, as such term is defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company is relying on the exemption from the formal valuation requirement of MI 61-101 available under section 5.5(a) of the MI 61-101 and on exemption from the minority shareholder approval requirements of the MI 61-101 available under section 5.7(a), on the basis of the fair value of the Transaction not exceeding 25% of the market capitalization of the Company, calculated in accordance with the provisions of the MI 61-101.
About Osisko Metals
Osisko Metals Incorporated is a Canadian exploration and development company creating value in the base metal space with a focus on zinc mineral assets. The Company controls Canada’s two premier zinc mining camps. The Company’s flagship properties are: 1) the Pine Point Mining Camp, located in the Northwest Territories, has an Inferred Mineral Resource of 52.4 Mt grading 4.64% zinc and 1.83% lead (6.47% ZnEq), making it the largest pit-constrained zinc deposit in Canada (please refer to the Technical Report filed on SEDAR December 23, 2019 for further information). The PPMC is located on the south shore of Great Slave Lake in the Northwest Territories, near infrastructure and paved highway access and with 100 kilometres of viable haulage roads already in place. In 2019-2020, the company will explore for additional mineral resources and continue advancing the overall project. 2) The Bathurst Mining Camp, located in northern New Brunswick, has Indicated Mineral Resources of 1.96 Mt grading 5.77% zinc, 2.38% lead, 0.22% copper and 68.9g/t silver (9.00% ZnEq) and Inferred Mineral Resources of 3.85 Mt grading 5.34% zinc, 1.49% lead, 0.32% copper and 47.7 g/t silver (7.96% ZnEq) in the Key Anacon and Gilmour South deposits. Please refer to the technical report entitled “NI 43-101 Maiden Resource Estimate for the Bathurst Mining Camp, New Brunswick, Canada” dated April 4, 2019 (with an effective date of February 20, 2019) which has been filed on SEDAR. In 2019-2020, the Company will continue to diligently develop and explore in order to confirm and grow both projects. The Company is also active in Quebec where it is testing multiple grass-roots base metal targets.
The mineral resources mentioned in this press release conform to NI 43-101 standards and were prepared by independent qualified persons, as defined by NI 43-101 guidelines. The above-mentioned mineral resources are not mineral reserves as they do not have demonstrated economic viability. The quantity and grade of the reported Inferred Mineral Resources are conceptual in nature and are estimated based on limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological grade and/or quality of continuity. Zinc equivalency percentages are calculated using metal prices, forecasted metal recoveries, concentrate grades, transport costs, smelter payable metals and charges (see respective technical reports for details).
Mr. Robin Adair, P.Geo and Vice President Exploration of Osisko Metals, is the Qualified Person who has approved of the scientific and technical information contained in this news release.
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We acknowledge the [financial] support of the Government of Canada.