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Osisko Gold Royalties Announces Agreement to Purchase Royalties on Spartan Resources’ Dalgaranga Gold Project in Western Australia
MONTREAL, Sept. 30, 2024 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (the “Company” or “Osisko”) (OR: TSX & NYSE) is pleased to announce that it has entered i
About this update from Or Royalties Inc.
[{"type":"text","content":" MONTREAL, Sept. 30, 2024 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (the “Company” or “Osisko”) (OR: TSX & NYSE) is pleased to announce that it has entered into a binding agreement to acquire a 1.8% gross revenue royalty (“GRR”) on the Dalgaranga Gold project (the “Dalgaranga Royalty” and the “Project”) operated by Spartan Resources Limited (“Spartan”) in Western Australia. In addition, Osisko shall also acquire a 1.35% GRR (the “Exploration Royalty”) on additional regional exploration licenses in proximity to Dalgaranga. The considerations to be paid by Osisko to the seller, Tembo Capital Mining Fund III (“Tembo”), for the Dalgaranga Royalty and the Exploration Royalty, respectively, total US$44 million and US$6 million (collectively the “Transaction”). Closing of the Transaction is subject to approval from Australia’s Foreign Investment Review Board which is expected in the coming weeks. TRANSACTION HIGHLIGHTS Exposure to a Premium Gold Development Project in a Top-Tier Mining Jurisdiction Dalgaranga is one of the best gold development and production re-start projects globally. The Project is located in Western Australia, one of the most prolific and well-established mining jurisdictions; and Dalgaranga, a recently mined open pit operation, has been rejuvenated by very impressive new high-grade discoveries, most notably the Never Never and Pepper deposits, which have shifted the focus towards ore extraction via underground mining methods. Near-Term Cash Flow Potential The Dalgaranga mill is fully-permitted and approvals for future underground mining are in progress, providing a clear path to near-term production. The Project is on the verge of re-starting as one of Western Australia’s next significant high-grade gold mines with first production from underground likely re-commencing within the next 2 years. Significant Geological Potential High-grade discoveries at the Project continue to drive ongoing underground mineral inventory growth; Spartan expects to complete a Mineral Reserve Estimate update and Feasibility Study both within the first half of 2025; the new underground mine plan will serve as the basis for Spartan’s Final Investment Decision (“FID”) to re-start operations at Dalgaranga; and, In addition to the evolving exploration story at Dalgaranga, the Exploration Royalty provides exposure to a large pro...