Amendment to Option Agreement, Brunswick Belt Property
April 21 2021 - 1:15PM
Brunswick Exploration Inc. (
“Brunswick”) (TSX-V:
BRW) and Osisko Metals Incorporated (
“Osisko
Metals”) (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51)
announce that, following a TSX-V review, they have amended the
terms of the option agreement (the
“Option”)
previously announced on August 17, 2020 whereby Brunswick can
acquire a majority interest in Osisko Metals’ Brunswick Belt
exploration property (the
“Property”), located in
the eastern portion of the Bathurst Mining Camp in the Bathurst
area in New Brunswick (the “
Transaction”). The
Property covers 72 kilometres of the prolific Brunswick Belt and
includes the Key Anacon and Gilmour South base metal deposits. The
amended Option now allows Brunswick to earn up to 51% interest by
spending an aggregate of $10,000,000 in two stages over a five-year
period.
Amended Option Agreement
Details
The Option is divided into two distinct earn-in
requirements (all amounts in Canadian dollars):
- The First
Option: by funding an aggregate of $2,000,000 on or before the
second-year anniversary of the signing of the Option and completing
a cash payment of $100,000, Brunswick can earn an initial 15%
interest in the Property.
- The Second
Option: by funding an aggregate of $10,000,000 (inclusive of First
Option expenditures) according to the schedule below, Brunswick can
earn an additional 36% interest in the Property for a total
interest of 51%:
- An aggregate of
$2,000,000, on or before the 2nd year anniversary;
- An aggregate of
$4,000,000, on or before the 3rd year anniversary;
- An aggregate of
$6,500,000, on or before the 4th year anniversary; and
- An aggregate of
$10,000,000, on or before the 5th year anniversary.
Once any one of the two earn-in requirements are
met (as per Brunswick’s discretion), a joint venture can be formed
between Brunswick and Osisko Metals. An NI 43-101 independent
geological report was completed by John Langton, P. Geo., of JPL
GeoServices and was filed by Brunswick on SEDAR on November 5,
2020.
Robert Wares is Chairman of the Board and Chief
Executive Officer of both Osisko Metals and of Brunswick, and hence
abstained from the negotiation process between the two companies.
The Transaction constitutes a “Related Party Transaction” within
the meaning of the policies of the TSX Venture Exchange
(“TSX-V”), as it involves “Non-Arm’s Length
Parties”, as defined in such policies. The Transaction is an arm’s
length transaction within the meaning of applicable securities
laws.
The Transaction is conditional upon TSX-V’s
final approval.
About Osisko Metals
Osisko Metals Incorporated is a Canadian
exploration and development company creating value in the base
metal space. The Company controls one of Canada’s premier
past-producing zinc mining camps, the Pine Point Project, located
in the Northwest Territories for which the 2020 PEA has indicated
an after-tax NPV of $500M and an IRR of 29.6%. The Pine Point
Project PEA is based on current Mineral Resource Estimates that are
amenable to open pit and shallow underground mining and consist of
12.9Mt grading 6.29% ZnEq of Indicated Mineral Resources and 37.6Mt
grading 6.80% ZnEq of Inferred Mineral Resources. Please refer to
the technical report entitled “Preliminary Economic Assessment,
Pine Point Project, Hay River, North West Territories, Canada”
dated July 30, which has been filed on SEDAR. The Pine Point
Project is located on the south shore of Great Slave Lake in the
Northwest Territories, near infrastructure, paved highway access,
and has an electrical substation as well as 100 kilometres of
viable haulage roads already in place.
The current Mineral Resources mentioned in this
press release conform to NI43-101 standards and were prepared by
independent qualified persons, as defined by NI43-101 guidelines.
The abovementioned Mineral Resources are not Mineral Reserves as
they do not have demonstrated economic viability. The quantity and
grade of the reported Inferred Mineral Resources are conceptual in
nature and are estimated based on limited geological evidence and
sampling. Geological evidence is sufficient to imply but not verify
geological grade and/or quality of continuity. Zinc equivalency
percentages are calculated using metal prices, forecasted metal
recoveries, concentrate grades, transport costs, smelter payable
metals and charges (see respective technical reports for
details).
About Brunswick
The Corporation, formerly Komet Resources Inc.,
is part of the Osisko Group of companies and is a Montreal-based
mineral exploration company listed on the TSX-V under symbol BRW.
It is focused on exploration and development of gold and base metal
properties in Eastern Canada. Current projects include
gold-polymetallic vein systems in southern New Brunswick (Fundy
Gold Project), base metals VMS in northern New Brunswick (Bathurst
Mining Camp option) and in the Chibougamau region of Quebec
(Waconichi), and nickel-copper-cobalt in Quebec (Lac Édouard).
For further information on this press
release, contact:
Osisko MetalsRobert Wares, CEOOsisko Metals
IncorporatedEmail: info@osiskometals.com |
BrunswickKillian Charles, PresidentBrunswick
Exploration Inc.Email: info@brwexplo.ca |
Cautionary Statement on Forward-Looking
Information
This news release contains "forward-looking
information" within the meaning of applicable Canadian securities
legislation based on expectations, estimates and projections as at
the date of this news release. Forward-looking information involves
risks, uncertainties and other factors that could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Factors that could cause actual results to differ
materially from such forward-looking information include, but are
not limited to, capital and operating costs varying significantly
from estimates; the preliminary nature of metallurgical test
results; delays in obtaining or failures to obtain required
governmental, environmental or other project approvals;
uncertainties relating to the availability and costs of financing
needed in the future; changes in equity markets; inflation;
fluctuations in commodity prices; delays in the development of
projects; the other risks involved in the mineral exploration and
development industry; and those risks set out in the Company’s
public documents filed on SEDAR at www.sedar.com. Although the
Company believes that the assumptions and factors used in preparing
the forward-looking information in this news release are
reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release.
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