Riley Gold Announces US$2.6M Investment From Osisko Gold Royalties
November 21 2022 - 5:30AM
Riley Gold Corp. (TSX.V: RLYG) (OTCQB: RLYGF)
(“
Riley Gold” or the “
Company”)
is pleased to announce the completion of a US$2.6 million
investment (the “
Investment”) from Osisko Gold
Royalties Ltd (“
Osisko”) (NYSE:OR & TSE:OR) in
exchange for royalties on projects held by Riley Gold’s wholly
owned Nevada subsidiary, RRC Exploration Inc.
(“
RRC”) including: a 2.0% net smelter return
(“
NSR”) royalty on Riley Gold’s Pipeline
West/Clipper Gold Project (“
PWC”), located in
Lander County, Nevada; a 0.5% NSR royalty on its Tokop Gold Project
(“
Tokop”), located in Esmeralda County, Nevada;
and an assignment of certain royalty buy-back rights on PWC, held
by RRC. The form of NSR royalty to be granted by RRC to Osisko is
dependent on the Company’s land holdings as described in the
Transactions Details below.
Highlights:
The Investment provides the following benefits
to Riley Gold:
- Establishes a royalty partnership with Osisko, an established,
and well respected, gold royalty company.
- Provides a less dilutive source of funds to replenish the
Company’s treasury.
- Allows Riley Gold to continue its various workstreams including
continued exploration at PWC (adjoining Nevada Gold Mines - Cortez
complex).
“We are extremely pleased to have Osisko endorse
and support our work in Nevada, particularly at PWC, by way of the
Investment. We believe that this transaction delivers significant
value to our shareholders through our ability to limit equity
dilution given the current challenging state of the equity markets.
Our goal is to put this capital to work through exploration and
development initiatives on our highly prospective Nevada properties
to generate further shareholder value,” commented Todd Hilditch,
CEO of Riley Gold.
Transaction Details
Riley Gold, together with RRC, and Osisko have
entered into an Investment Agreement and Royalty Agreements whereby
Riley Gold has granted, where applicable, a direct NSR royalty
interest on land owned by RRC and an overriding NSR royalty
interest on land currently held under option or lease by RRC, that
includes a 2.0% NSR royalty on PWC and a 0.5% NSR royalty on Tokop.
RRC has also assigned to Osisko certain rights (currently held by
RRC) to buy-back NSR royalties (ranging from 0.75% to 1.5%) from
current landowners on specific claims within PWC. Additionally,
Riley Gold has provided Osisko a right of first offer and a right
of first refusal on the sale of royalties or streams on PWC and
Tokop. In accordance with the Investment Agreement entered into by
Osisko, RRC and Riley Gold, consideration of US$2.6 million was
paid to Riley Gold on closing.
Proceeds from the Investment will be used for
exploration and development activities and for general corporate
purposes.
About Riley Gold Corp.
Riley Gold is an exploration and development
company focused in Nevada, USA. The Company’s primary focus is on
its two cornerstone assets: the Pipeline West/Clipper Project
located in the Battle Mountain Eureka Trend (within the Cortez
District) and the Tokop Gold Project located within the Walker Lane
Trend. Riley Gold’s founders and leadership team have a proven
track record of maximizing shareholder value during each phase of
the mining life cycle: exploration, development, and
production.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Todd HilditchChief Executive OfficerTel: (604)
443-3831
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 release.
Cautionary statement regarding
forward–looking information
Certain disclosures in this release constitute
"forward-looking information" within the meaning of Canadian
securities legislation (such statements being referred to as
"forward-looking statements"). Forward-looking statements are
statements that are not historical facts and are generally, but not
always, identified by words such as the following: expects, plans,
anticipates, believes, intends, estimates, projects, assumes,
potential and similar expressions. Forward-looking statements
involve risks, uncertainties and other factors that could cause
actual results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
statements, including statements regarding the Company’s ability to
continue its various workstreams including continued exploration at
PWC and other exploration and development initiatives. Factors that
could cause actual results to differ materially from these
forward-looking statements include, but are not limited to,
variations in the nature, quality and quantity of any mineral
deposits that may be located, the Company's inability to obtain any
necessary permits, consents or authorizations required for its
planned activities, and the Company's inability to raise the
necessary capital or to be fully able to implement its business
strategies. The reader is referred to the Company's public
disclosure record which is available on SEDAR
(www.sedar.com). Although the Company believes
that the assumptions and factors used in preparing the
forward-looking statements are reasonable, undue reliance should
not be placed on these statements, which only apply 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. Except as
required by securities laws and the policies of the TSX Venture
Exchange, the Company disclaims any intention or obligation to
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
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