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Osisko Gold Royalties Announces Royalty Transaction on Namdini Gold Project in Ghana
MONTREAL, Oct. 30, 2023 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX & NYSE) is pleased to announce that it has acquir
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[{"type":"text","content":" MONTREAL, Oct. 30, 2023 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX & NYSE) is pleased to announce that it has acquired a 1.0% net smelter return (“NSR”) royalty (the “Royalty”) covering the Namdini Gold Project (“Namdini”) in Ghana. Osisko has closed the transaction with Savannah Mining Limited (“Savannah”), acquiring a direct interest in 50% of Savannah’s 2.0% NSR royalty for total consideration of US$35 million (excluding applicable taxes and levies). HIGHLIGHTS Near-term gold equivalent ounces (“GEO”) from a Fully-Permitted Project Currently Under Construction Namdini is on the verge of becoming one of Western Africa’s next significant producing mines with gold production over the initial three years expected to reach approximately 360,000 ounces per year, and an average 287,000 ounces per year over an initial 15-year life of mine; First gold production from Namdini is expected in late 2024; As of mid-October 2023, Namdini’s 34.5 kV distribution power lines to site, connected to the national power grid 30km west of the project, were 99% complete; in addition, Namdini’s plant bulk earthworks were 99% complete, while the CIL and Flotation tailings storage facilities were 29% and 39% complete, respectively. Operator is a Large-Scale and Experienced Global Miner Namdini is controlled and will be operated by Shandong Gold Co Ltd. (“Shandong”), a large-scale and well-capitalized global miner with a history of development and operational expertise; Shandong operates Namdini through its subsidiary Cardinal Namdini Mining Limited (“Cardinal”), which is owned in partnership with a subsidiary of China Railway Construction Group Corp Ltd. Jurisdiction with Well-Established Mining Act and Laws Ghana is a top gold mining jurisdiction, ranked 6th in global gold production, and ranked 1st amongst African nations in 2022, based on data from the World Gold Council; Payments associated with Ghanian Withholding and Value-Added Taxes (VAT), plus associated levies, result in an additional cash outlay by Osisko to the relevant authorities of US$7.7 million. Osisko Granted Additional Rights As part of the transaction Savannah has granted Osisko certain additional rights. Paul Martin, Interim CEO of Osisko commented: “Today’s announcement highlights Osisko’s continued ability t...