Osisko Announces Agreement to Purchase Royalty on Tocantinzinho Project
July 26 2021 - 8:00AM
Osisko Gold Royalties Ltd (the “
Corporation” or
“
Osisko”) (OR: TSX & NYSE) is pleased to
announce that it has entered into a royalty transfer agreement with
Sailfish Royalty Corp. (“
Sailfish”) pursuant to
which Osisko has agreed to purchase an up to 2.75% net smelter
return (“
NSR”) royalty on the Tocantinzinho gold
project (“
Tocantinzinho”) operated by Eldorado
Gold Corporation (“
Eldorado”) for cash
consideration of US$10 million.
Tocantinzinho is a permitted and
construction-ready, open-pit gold project located in Para State,
Brazil. The project hosts NI 43-101 compliant mineral inventory of
39Mt grading 1.42g/t gold for 1.78Moz of gold in proven and
probable reserves derived from, and inclusive of 46Mt grading
1.37g/t gold for 2.03Moz of gold in the measured and indicated
resource categories and 0.6Mt grading 0.90g/t gold for 17Koz of
gold in the inferred resource category.
A feasibility study on the project was completed
by Eldorado in 2015 and an updated technical report was published
by the company in 2019 which outlines an expected mine life of 10
years with annual gold production of 170Koz at an all-in sustaining
cost of US$615 per ounce. The royalty covers all known reserves and
resources of the planned Tocantinzinho project as well as its
surrounding 28,275 hectare land package.
The operator of Tocantinzinho has a one-time
buydown option in relation to the royalty. At the time of project
construction the operator may make a payment of US$5.5 million to
reduce the royalty percentage by 2% resulting in a royalty of
0.75%. Pursuant to a pre-existing agreement entered into by
Sailfish, the buydown payment is payable to the original royalty
owners.
Sandeep Singh, President and CEO of Osisko
commented: “We are pleased to gain exposure to a large,
construction-ready gold project with upside potential at depth as
well as its surrounding land package in an area of Brazil that
hosts a number of operating mines.”
Qualified Person
The scientific and technical content of this
news release has been reviewed and approved by Guy Desharnais,
Ph.D., P.Geo., Vice President, Project 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 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 150 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.
Osisko’s 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: |
Heather TaylorVice President,
Investor RelationsTel: (514) 940-0670 #105Email:
htaylor@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, statements with respect to future events or
future performance, the realization of the anticipated benefits
deriving from Osisko’s investments, the general performance of the
assets of Osisko, including the realization of potential synergies
with current and future operating partners, and the results of
development exploration and production activities as well as
expansions projects relating to the properties in which Osisko
holds a royalty, stream or other interest. 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,
without limitation, management’s perceptions of historical trends;
current conditions; expected future developments; the ongoing
operation of the properties in which Osisko holds a royalty, stream
or other interest by the operators of such properties in a manner
consistent with past practice; the accuracy of public statements
and disclosures made by the operators of such underlying
properties; no material adverse change in the market price of the
commodities that underlie the asset portfolio; no adverse
development in respect of any significant property in which Osisko
holds a royalty, stream or other interest; the accuracy of publicly
disclosed expectations for the development of underlying properties
that are not yet in production; and the absence of any other
factors that could cause actions, events or results to differ from
those anticipated, estimated or intended. 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, that the financial
information presented in this press release is preliminary and
could be subject to adjustments, the successful continuation of
mining activities in Québec and more particularly of the operations
underlying the Corporation’s assets, the performance of the assets
of Osisko, the growth and the benefits deriving from its portfolio
of investments, risks related to the operators of the properties in
which Osisko holds a royalty, stream or other interest, including
changes in the ownership and control of such operators; risks
related to development, permitting, infrastructure, operating or
technical difficulties on any of the properties in which Osisko
holds a royalty, stream or other interest, the influence of
macroeconomic developments as well as the impact of and the
responses of relevant governments to the COVID-19 outbreak and the
effectiveness of such responses.
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 statements set forth
herein reflect Osisko’s expectations as at the date of this press
release and are 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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