Osisko Highlights Achievements From 2019
January 08 2020 - 8:00AM
Osisko Gold Royalties Ltd (“
Osisko” or the
“
Company”) (TSX & NYSE: OR) would like to
highlight some of the Company’s recent achievements that will add
significant value for its shareholders. In 2019, Osisko
announced a total of eight (8) royalty and streaming transactions
valued at over $245 million – ranking the Company among the most
active participants in the royalty and streaming sector.
- Horne 5 Silver Stream: On February 27,
Osisko completed a silver stream with Falco Resources Ltd.
(“Falco”) for up to 100% of the silver produced
from the Horne 5 project located in Québec, Canada. Deposits
to be made by Osisko under the stream agreement are based on
milestones related to project advancement. Once in
production, the Horne 5 silver stream has the potential to deliver
approximately 30,000 gold-equivalent ounces
(“GEOs”) to Osisko annually, ranking it second
only to the Canadian Malartic royalty in Osisko’s royalties and
streams portfolio. The creation of the Horne 5 silver stream
in 2019 represented a rare opportunity to gain access to meaningful
life-of-mine stream in a premier mining jurisdiction without any
encumbrances such as buy-backs, production thresholds or production
caps. Throughout 2020, Falco is expected to continue
advancing its project through the permitting process while
maintaining its positive dialogue with certain key stakeholders,
including the government of Québec.
- Share Repurchase: On
June 25, Osisko announced a repurchase of 12,385,717 common Osisko
shares from a jointly owned subsidiary of certain investment funds
managed by Orion Resource Partners (“Orion”)
representing a total value of $174.6 million. Payment from
Osisko to Orion consisted of a combination of cash and the direct
transfer of other equities held by Osisko. In a concurrent
transaction, Osisko also agreed to sell to separate entities
managed by Orion certain other equity securities held by Osisko for
cash. The share repurchase transaction was an elegant
solution that allowed the Company to help Orion reduce its
ownership percentage to the benefit of all remaining shareholders,
while also providing Osisko with an exit opportunity for certain of
its equity holdings.
- Sable Resources Investment Agreement: On
August 29, Osisko and Sable Resources Ltd.
(“Sable”) entered into a strategic investment
agreement whereby Osisko agreed to support Sable’s exploration
activities over a four-year period in exchange for a net smelter
return (“NSR”) royalty of up to 2% covering all of
Sable’s properties over the period. In backing Sable’s
excellent team of geoscientists, the strategic investment in Sable
provided Osisko with royalty exposure to (among others) over
440,000 hectares in northern Mexico and over 58,000 hectares in the
San Juan Province of Argentina. Osisko’s investment in Sable
also included a right of first refusal (“ROFR”) on
all future royalty and streaming transactions by Sable. In in
the first quarter of 2020, Sable is expected to drill its
100%-owned Vinata project in Mexico. Sable also received
permits for six targets at its Don Julio cluster in Argentina as
well as environmental and community permits for its Scorpius
Project near Ayacucho Peru, which will allow it to systematically
test all priority targets throughout the year.
- Mantos Blancos Stream Enhancement: On
September 3, Osisko Bermuda Limited (“OBL”), a
wholly-owned subsidiary of the Company, announced an agreement with
Mantos Copper S.A. (“Mantos Copper”) to enhance
its existing silver stream on the Mantos Blancos copper mine in
Chile. The stream amendment transaction was part of a
comprehensive financing which will enable Mantos Copper to expand
the Mantos Blancos sulphide concentrator plant. Benefits to
Osisko include (i) additional exposure to a long-life asset with
further production upside and mine life extension potential; (ii)
immediately increases cash margin per ounce and annual cash flow
from the stream; and (iii) increases the value of OBL’s existing
silver stream on Mantos Blancos. During 2020, Mantos Copper
is expected to continue advancing the Mantos Blancos expansion with
expected completion in mid-2021.
- Barkerville
Acquisition: On November 21, Osisko
agreed to acquire 100% of Barkerville Gold Mines Ltd., owner of the
Cariboo gold project in central British Columbia, Canada. The
addition of the Cariboo project to Osisko’s portfolio adds a
potentially world-class brownfield asset in Canada with a
high-quality mineral resource, significant exploration upside, and
substantial tailings and mining infrastructure in place. In 2020,
one of Osisko’s primary objectives will be to obtain third-party
funding for the Cariboo project while concurrently using the
Company’s expertise in exploration, permitting, mine development,
and mine finance to keep progressing the project and adding
value.
- Bralorne NSR Royalty: On November 21,
Osisko entered into an investment agreement whereby it purchased a
1.2% NSR royalty from Talisker Resources Ltd.
(“Talisker”) on the historic Bralorne gold project
located in southwestern British Columbia, Canada. Osisko’s
investment in Talisker also included a ROFR on royalty buybacks,
and on royalty and stream financings relating to Talisker’s land
package of over 226,000 hectares in British Columbia. In 2020
Talisker is expected to pursue confirmatory drilling and
exploration work at Bralorne while developing new targets at the
Spences Bridge property.
- Pine Point Royalty: On December 3,
Osisko and Osisko Metals Incorporated (“Osisko
Metals”) announced an agreement pursuant to which Osisko
agreed to purchase a 1.5% NSR royalty on Osisko Metals’ Pine Point
project located in Canada’s Northwest Territories. Pine Point
is a brownfields open-pittable, zinc-lead development asset
containing an Inferred Mineral Resource of 52.4 million tonnes
grading 4.64% zinc and 1.83% lead (6.47% ZnEq), making it the
largest pit-constrained zinc camp in Canada. In 2020, Osisko
Metals is expected to continue project studies, exploration, and
community engagement work at Pine Point.
- Santana Royalty: On December 6, Osisko
and Minera Alamos Inc. (“Minera Alamos”) announced
a royalty transaction that fully-funded the permitted Santana
project to production. Santana, located in Sonora State,
Mexico, is a simple heap leach gold project with very low capital
requirement that could potentially be put into production in a
short timeframe of approximately 8 months. Once in
production, Santana could provide Osisko with 1,000 to 2,000 GEOs
per year with the potential to increase with further exploration
upside. Minera Alamos is expected to begin construction of
the Santana project the first half of 2020.
- Capital Returned to Shareholders: As of
today’s date, in addition to the above achievements, Osisko has
returned approximately $336 million to shareholders in the form of
dividends and share buybacks since its inception in 2014. In
2019 alone, Osisko distributed approximately $30 million in
dividends and over $184 million through share buybacks.
Qualified Person
The scientific and technical content of this
news release has been reviewed and approved by Guy Desharnais,
Ph.D., P.Geo., Director of Mineral Resources Evaluation at Osisko
Gold Royalties Ltd, who is a “qualified person” as defined by
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects (“NI 43-101”).
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.
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: |
|
Sandeep
SinghPresidentTel. (514) 940-0670ssingh@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 ability of Osisko to realize the full potential
of its investments with Falco, Sable, Mantos Copper, Talisker,
Osisko Metals and Minera and of its transaction with Barkerville
Gold Mines Ltd., and the ability of Falco, Sable, Mantos Copper,
Talisker, Osisko Metals and Minera to carry out activities as
planned and anticipated in 2020 and, as applicable, thereafter, the
ability of Osisko to obtain third-party funding for the Cariboo
project while concurrently progressing and adding value to such
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 exploration activities carried out by operators of the
properties to accurately predict mineralization; errors in
operators’ geological modelling; the ability of operators to
complete further exploration activities, including drilling, lack
of third party interest in funding the Cariboo project.
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 of Osisko
which is 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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