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Osisko Gold Royalties Announces Closing of CSA Stream Transactions with Metals Acquisition
MONTREAL, June 16, 2023 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX & NYSE) is pleased to report that the Corporation
About this update from Or Royalties Inc.
[{"type":"text","content":" MONTREAL, June 16, 2023 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX & NYSE) is pleased to report that the Corporation’s wholly-owned subsidiary, Osisko Bermuda Limited (“OBL”), closed the previously announced silver purchase agreement (the “Silver Stream”) and copper purchase agreement (the “Copper Stream”, and together with the Silver Stream, the “Metals Streams”) with Metals Acquisition Limited (“MAC”) (MTAL: NYSE) concurrently with the closing of the acquisition by MAC of the producing CSA mine in New South Wales, Australia (“CSA” or the “Mine”) from a subsidiary of Glencore plc (the “Acquisition Transaction”). The closing date of the Metals Stream and Acquisition Transaction was June 15, 2023 (the “Closing Date”). TRANSACTION HIGHLIGHTS Immediately Enhances Osisko’s Cash Flow Starting with an effective date of February 1, 2023, OBL will purchase refined silver equal to 100% of payable silver for the life of the Mine. Between 2023-2025, MAC estimates annual payable silver production from the Mine to average ~428koz. Beginning on the first anniversary of the Closing Date, OBL will purchase refined copper equal to between 3.0% and 4.875% of payable copper until 33,000 metric tonnes of refined copper have been delivered, and 2.25% thereafter for the remaining life of the Mine. Between 2023-2025, MAC estimates annual payable copper production from the Mine to average ~46,000 metric tonnes. Exposure to Premium Copper Asset in a Tier 1 Mining Jurisdiction One of the highest-grade copper mines in Australia with a multi-decade operating history of consistent production. Track-record of reserve and resource replacement, with greater than 100% of mined reserves having been replaced since 2011. Recent investments of approximately US$130 million support potential mine life extensions beyond 15 years. Near-Term Opportunities to Extend Mine Life and Enhance Value Significant exploration potential from both near-mine and regional targets along a highly prospective geological trend. Several areas identified to improve efficiencies, optimize operations and rationalize costs. Significant resource and mine life upside by potentially lowering the cut-off grade. Experienced Management Team with Track-Record of Creating Value for Stakeholders Proven Australian mining professionals with extensive mini...