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Osisko Gold Royalties Announces Royalty Transaction with Hot Chili on Costa Fuego Copper-Gold Project in Chile
MONTREAL, June 28, 2023 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (“Osisko”) (OR: TSX & NYSE) is pleased to announce that it has entered into a binding agre
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[{"type":"text","content":" MONTREAL, June 28, 2023 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (“Osisko”) (OR: TSX & NYSE) is pleased to announce that it has entered into a binding agreement to acquire a 1.0% copper net smelter return (“NSR”) royalty and a 3.0% gold NSR royalty (the “Royalties”) from Hot Chili Limited (“Hot Chili”) covering Hot Chili’s Costa Fuego Copper-Gold Project (“Costa Fuego” or the “Project”) in Chile, for total cash consideration of US$15.0 million. Sandeep Singh, President and CEO of Osisko commented: “Costa Fuego has the potential to be a long-life, lower-cost copper mine in Chile, with significant by-product credits, importantly situated at low elevation and in close proximity to key infrastructure. We are impressed with what the Hot Chili team has been able to accomplish to date, most notably on the exploration and permitting fronts, and we look forward to future development milestones at Costa Fuego.” COSTA FUEGO HIGHLIGHTS One of the world’s largest undeveloped copper projects not currently controlled by a major mining company; A March 2022 NI 43-101 updated global Mineral Resource Estimate (“MRE”), including both the open pit and underground portions of the Cortadera and Productora deposits, contains an Indicated Resource of 725 million tonnes (“Mt”) grading 0.47% Copper Equivalent (“CuEq”), grading 0.38% Copper (“Cu”), 0.11 g/t gold (“Au”), 0.45 g/t silver and 93 ppm Molybdenum; The MRE also includes an Inferred Resource of 202Mt grading 0.30% Cu and 0.06g/t Au; Hot Chili’s June 28, 2023 Preliminary Economic Assessment (“PEA”) projects a 16-year life-of-mine with an annual average production rate of 95kt Cu and 49koz Au in the first 14 years; The PEA projects one of the lowest capital intensity copper development projects globally; Costa Fuego is situated at low altitude and is in close proximity to all key infrastructure requirements; Secured a water permit and power connection to the grid, and the Project’s Environmental Impact Assessment is significantly advanced; and An updated MRE for the Project is scheduled for late 2023 and will serve as the basis for Pre-Feasibility Study (“PFS”), scheduled for completion in 2024. ADDITIONAL TRANSACTION CONSIDERATIONS Osisko has granted Hot Chili an option to buy down a portion of the royalty, which can only occur upon change of control and exercisable until the fourth anni...