Osisko Update Regarding Lydian International
December 23 2019 - 2:42PM
Osisko Gold Royalties Ltd (“
Osisko” or the
“
Company”) (TSX & NYSE: OR) today has
been informed by Lydian International Limited
(“
Lydian”) that Lydian and its direct and indirect
wholly owned subsidiaries, Lydian Canada Ventures Corporation and
Lydian U.K. Corporation Limited, have obtained an initial order
(“
Initial Order”) from the Ontario Superior Court
of Justice (Commercial List) for protection under the Companies’
Creditors Arrangement Act (Canada) (the “
CCAA”) as
a result of the ongoing unlawful activities against Lydian’s
Amulsar project in Armenia (the
“
Project”).
Since June 2018, illegal blockades have
prevented Lydian and its contractors from entering the Project
site. During this period, Lydian has petitioned local and
national government officials to enforce the rule of law and remove
the blockades. Despite favourable court rulings and numerous
public statements from the Government of Armenia affirming that
there is no legal basis on which to prevent Lydian from completing
and operating the Project, site access continues to be
restricted.
The Initial Order provides for a broad stay of
proceedings and the exercise and enforcement of rights and remedies
against Lydian by its creditors and others until January 2,
2020. While under CCAA protection, Lydian intends to continue
discussions with its lenders and others, including the Government
of Armenia, to seek to maximize the outcome for all
stakeholders.
Osisko’s interest in the Project consists of a
senior secured 4.22% gold and 62.5% silver stream, and an unsecured
81.9% gold offtake. Osisko will continue to monitor the
situation closely, and while an impairment has not been determined
at this time, a significant reduction in the carrying value of the
assets, totaling C$97 million as at September 30, 2019, may be
required.
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., an
18.0% interest in Osisko Metals Incorporated and a 19.9% interest
in Falco Resources Ltd.
Osisko is a corporation incorporated under the
laws of the Province of Québec, with its head office is located at
1100 avenue des Canadiens-de-Montréal, Suite 300, Montréal, Québec,
H3B 2S2.
For further
information, please contact Osisko Gold Royalties
Ltd: |
Sean RoosenChair and Chief
Executive OfficerTel. (514) 940-0670sroosen@osiskogr.com |
|
Forward-looking Statements
Certain statements contained in this press
release may be deemed “forward‐looking statements” within the
meaning of applicable Canadian and U.S. securities laws. These
forward‐looking statements, by their nature, require Osisko to make
certain assumptions and necessarily involve known and unknown risks
and uncertainties that could cause actual results to differ
materially from those expressed or implied in these forward‐looking
statements. Forward‐looking statements are not guarantees of
performance. These forward‐looking statements, may involve, but are
not limited to, the outcome of the proceedings initiated by Lydian
pursuant to the Companies’ Creditors Arrangement Act on its
business as well as Osisko’s estimate of the impact of the
proceedings initiated by Lydian on the carrying value of Osisko’s
assets relating to the Amulsar Project,. Words such as “may”,
“will”, “would”, “could”, “expect”, “believe”, “plan”,
“anticipate”, “intend”, “estimate”, “continue”, or the negative or
comparable terminology, as well as terms usually used in the future
and the conditional, are intended to identify forward‐looking
statements. Information contained in forward‐looking statements is
based upon certain material assumptions that were applied in
drawing a conclusion or making a forecast or projection, including
management’s perceptions of historical trends, current conditions
and expected future developments, as well as other considerations
that are believed to be appropriate in the circumstances. Osisko
considers its assumptions to be reasonable based on information
currently available, but cautions the reader that their assumptions
regarding future events, many of which are beyond the control of
Osisko, may ultimately prove to be incorrect since they are subject
to risks and uncertainties that affect Osisko and its business;
Such risks and uncertainties include, among others, risks relating
to the ability of operators to carried out their operating
activities.
For additional information with respect to these
and other factors and assumptions underlying the forward‐looking
statements made in this press release, see the section entitled
“Risk Factors” in the most recent Annual Information Form and
Management Discussion and Analysis of Osisko which are filed with
the Canadian securities commissions and available electronically
under Osisko’s issuer profile on SEDAR at www.sedar.com and
with the U.S. Securities and Exchange Commission and available
electronically under Osisko’s issuer profile on EDGAR at
www.sec.gov. The forward‐ looking information set forth herein
reflects Osisko’s expectations as at the date of this press release
and is subject to change after such date. Osisko disclaims any
intention or obligation to update or revise any forward‐looking
statements, whether as a result of new information, future events
or otherwise, other than as required by law.
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