The Board of Directors of SolGold (LSE: SOLG) (TSX: SOLG) is pleased to announce that SolGold has entered into a binding agreement with Osisko Gold Royalties Ltd for a US$50 million royalty financing with reference to the Company’s Cascabel copper-gold project in northern Ecuador.

Osisko will receive a 0.6% NSR interest from SolGold, calculated with reference to net smelter returns from the Cascabel licence area. SolGold has a buy-back option, exercisable at SolGold’s election for four years from closing, for one-third of the NSR interest.

Liam Twigger, Chairperson of SolGold, commented:

“We are very pleased to enter into this agreement with Osisko. The Osisko group is recognized as one of the most successful mining teams in the world. This funding immediately removes the financing overhang that has encumbered SolGold and provides an accretive and attractive financing solution.  SolGold can now devote its complete attention to the Strategic Review Process which is currently underway to maximize shareholder value.”

Recently appointed SolGold Director Dan Vujcic, commented:

“This financing shows the intent going forward of SolGold becoming a nimble and agile organisation that can procure attractive financing even in a turbulent macro environment. Working with Osisko, a party, like SolGold, with big aspirations is exciting and is testament to the relationships that can be forged on the back of owning a Tier 1 project in a commodity essential to the global shift to decarbonisation.”

Closing of the Royalty Financing is subject to customary conditions precedent.

About Osisko Gold Royalties Ltd

Osisko is an intermediate precious metal royalty company focused on the Americas that commenced activities in June 2014. Osisko holds a North American focused portfolio of over 165 royalties, streams and precious metal offtakes. Osisko’s portfolio is anchored by its cornerstone asset, a 5% net smelter return royalty on the Canadian Malartic mine, which is the largest gold mine in Canada.

About SolGold

SolGold is a leading resources company focussed on the discovery, definition and development of world-class copper and gold deposits and continues to strive to deliver objectives efficiently and in the interests of shareholders. SolGold is exploring the length and breadth of this highly prospective and gold-rich section of the Andean Copper Belt which is currently responsible for c40% of global mined copper production.

The Company operates with transparency and in accordance with international best practices. SolGold is committed to delivering value to its shareholders, while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace and minimizing the environmental impact.

SolGold is listed on the London Stock Exchange and Toronto Stock Exchange. The Company has on issue a total of 2,296,051,501 fully paid ordinary shares and 42,250,000 share options.