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Osisko Gold Royalties and Franco-Nevada Acquire a Gold Stream on SolGold’s Cascabel Copper-Gold Project
MONTRÉAL, July 15, 2024 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX & NYSE) is pleased to announce that its wholly-ow
About this update from Or Royalties Inc.
[{"type":"text","content":" MONTRÉAL, July 15, 2024 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX & NYSE) is pleased to announce that its wholly-owned subsidiary, Osisko Bermuda Limited (“OBL”), in partnership with Franco-Nevada (Barbados) Corporation (“FNB”), a wholly-owned subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) (FNV: TSX & NYSE), has entered into a definitive Purchase and Sale Agreement (Gold) (the “Gold Stream”) with SolGold plc and certain of its wholly-owned subsidiaries (collectively, “SolGold”) (SOLG: LSE & TSX), with reference to gold production from SolGold’s 100%-owned Cascabel copper-gold project located in Ecuador (the “Project” or “Cascabel”). Osisko also holds a 0.6% NSR royalty on Cascabel which it purchased from SolGold in 2022. Pursuant to the terms of the Gold Stream, OBL and FNB (collectively, the “Stream Purchasers”) will make initial deposits totaling US$100 million to SolGold in three equal tranches to fund the Project’s pre-construction costs (the “Pre-Construction Deposit”). The first tranche of the Pre-Construction Deposit will be funded at closing, with the two subsequent tranches subject to the achievement of key development milestones. Thereafter, the Stream Purchasers will make additional deposits totaling US$650 million to SolGold to fund construction costs once the Project is fully financed and further derisked (the “Construction Deposit”, and together with the Pre-Construction Deposit, the “Deposit”). OBL will provide 30% of the Deposit in exchange for a 30% interest in the Gold Stream and FNB will provide 70% of the Deposit in exchange for a 70% interest in the Gold Stream. Jason Attew, President & CEO of Osisko commented: “Cascabel is a world-class copper-gold project that has the potential to become a multi-generational mine. SolGold’s focus on sustainable development has generated very strong support from the Government of Ecuador and the local communities near the Project. This new stream investment, which complements Osisko’s existing royalty on Cascabel, further enhances Osisko’s peer leading growth profile at an attractive rate of return. We are excited to be partnering with Franco-Nevada to continue to support SolGold and the development of this exceptional asset.” INVESTMENT HIGHLIGHTS Increasing Exposure to a Long Life, Tier-1i Copper-Gol...