Osisko Announces Increase to Its Royalties on Osisko Mining’s Windfall Project
January 20 2020 - 8:00AM
Osisko Gold Royalties Ltd (“
Osisko” or the
“
Company”) (TSX & NYSE: OR) is pleased to
announce that it has increased its net smelter return
(“
NSR”) royalty on the world-class Windfall gold
project (“
Windfall Project”), currently being
developed by Osisko Mining Inc. (“
Osisko
Mining”).
Pursuant to its investment agreement with Osisko
Mining dated August 25, 2015, the Company has exercised its right
to repurchase six (6) 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.
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.
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”).
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 Osisko Mining and of its transaction with
Barkerville Gold Mines Ltd., and the ability of Osisko Mining to
continue to successfully develop the Windfall 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 Osisko Mining
to accurately predict mineralization; errors in operator
geological modelling; the ability of Osisko Mining to complete
further exploration activities, including drilling.
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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