Osisko Gold Royalties Ltd (the “
Corporation” or
“
Osisko”) (OR: TSX & NYSE) is pleased to
announce that its wholly-owned subsidiary, Osisko Bermuda Limited
(“
OBL”) has entered into a binding agreement with
Tintic Consolidated Metals LLC (“
TCM”), an
indirect wholly-owned subsidiary of Osisko Development Corp.
(“
ODV”) (ODV: TSX-V & NYSE), with respect to
the previously announced metals stream (the
“
Stream”) on the Trixie test mine (the
“
Trixie Mine”), as well as mineral claims covering
more than 17,000 acres in Central Utah’s historic Tintic Mining
District (the “
Tintic Property”).
STREAM DETAILS
- Upfront Deposit:
OBL will make an upfront cash payment to TCM totaling US$20
million, with the proceeds to be used to fund the development of
the Trixie Mine and Tintic Property.
- Streamed Metal:
OBL will purchase 2.5% of all metals produced from the Tintic
Property until 27,150 ounces of refined gold have been delivered.
Thereafter, OBL will purchase 2.0% of all metals produced from the
Tintic Property for the remaining life of mine.
- Production
Payments: OBL will make ongoing payments for refined metal
delivered to the Stream equal to 25% of the spot prices on the day
prior to the date of delivery.
- Security: The
Stream shall be a senior secured, first ranking obligation of ODV,
inclusive of guarantees.
- Area of Interest:
The Stream shall be referenced to production from the entire Tintic
Property, including the Trixie Mine.
- Closing: The
Stream is expected to close on or before July 31, 2022, subject to
certain conditions precedent to closing, including, but not limited
to, execution of all definitive agreements with respect to the
Stream. The economic effective date of the transaction is May 29,
2022.
TRIXIE MINE DEVELOPMENT
UPDATE
ODV’s near term plan is to initiate underground
and at surface drilling while it continues exploration development
and processing of the mineralized material at the Trixie Mine.
Drilling is targeting support for preparation of an initial
resource statement pursuant to National Instrument 43-101 over the
next twelve months. Concurrently, ODV will complete advanced
technical studies on the Tintic Property to generate additional
surface and underground targets, conduct metallurgical testing,
geotechnical work and environmental studies to justify further
development as well as increase production through a low-capital
expenditure expansion.
For further details including cautionary
language and forward looking statements related to the Trixie Mine
and Tintic Property, please refer to ODV’s press releases dated
January 25, 2022 titled “Osisko Development Announces Proposed
Acquisition of Tintic Consolidated Metals” and May 30, 2022 titled
“Osisko Development Completes Acquisition of Tintic Consolidated
Metals, Binding Stream Terms and Release of Funds from Subscription
Receipt Financing” filed on www.sedar.com.
OSISKO OWNERSHIP INTEREST IN ODV
ODV announced today that is has closed its
previously announced acquisition of a 100% interest in the Trixie
Mine and Tintic Property, and satisfied the escrow release
conditions relating to the previously announced issuances of
subscription receipts of ODV (collectively the
“Transactions”). Following completion of the
Transactions, Osisko’s ownership interest in ODV is now
approximately 45%.
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 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.
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 the United States Private Securities Litigation Reform
Act of 1995 and “forward-looking information” within the meaning of
applicable Canadian securities legislation.. 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, statement that all conditions will be met to close
the Stream in a timely manner , statements with respect to future
events or future performance, the realization of the anticipated
benefits deriving from Osisko’s investments, including the Stream,
the general performance of the assets of Osisko, and the results of
exploration, development and production activities as well as
expansions projects relating to the properties in which Osisko
holds a royalty, stream or other interest and in particular the
continued exploration and development of the Trixie Mine. Words
such as “may”, “will”, “would”, “could”, “expect”, “suggest”,
“appear”, “believe”, “plan”, “anticipate”, “intend”, “target”,
“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 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. In this press release, Osisko
relies on information publicly disclosed by third parties
pertaining to its potential new assets: the Stream on the Tintic
Property and, therefore, assumes no liability for such third party
public disclosure.
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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