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Osisko Gold Royalties Enters into Agreement to Acquire a Cash-Flowing Silver Stream on the High-Grade CSA Mine
MONTRÉAL, March 17, 2022 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX & NYSE) is pleased to announce that its wholly-o
About this update from Or Royalties Inc.
[{"type":"text","content":" MONTRÉAL, March 17, 2022 (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”), has entered into a binding agreement with Metals Acquisition Corp. (“MAC”) (MTAL: NYSE) with respect to a US$90 million silver stream (the “Silver Stream”) to facilitate MAC’s acquisition of the producing CSA mine in New South Wales, Australia (“CSA” or the “Mine”). MAC announced today that it has entered into an agreement to acquire 100% of the shares of the owner of CSA from a subsidiary of Glencore plc (the “Acquisition Transaction”). OBL has also provided MAC with an option to draw up to an additional US$100 million in upfront proceeds through the sale of a copper stream, subject to the parties finalizing definitive terms and conditions. “We are excited to partner with MAC on the acquisition of the CSA mine,” said Sandeep Singh, President and Chief Executive Officer of Osisko. “The acquisition of a silver stream on CSA meets all of Osisko’s stringent acquisition criteria. The stream will provide long-life precious metals cash flow in a top tier jurisdiction at an attractive return. CSA has a long mine life and a tremendous history of reserve replacement with significant further upside. Near-term opportunities to extend the already-long mine life and optimize production have already been identified. We are pleased to have supported, on a bilateral basis, a team of the caliber of MAC’s, and look forward to the conclusion of this transaction and further developing our meaningful relationship. Lastly, the copper stream funding alternative provides additional value potential to Osisko and funding alternatives to MAC as they go through their SPAC closing process.” TRANSACTION HIGHLIGHTS Immediately Enhances Osisko’s Cash Flow 100% of payable silver delivered to OBL for the life of the Mine, with ongoing payments equal to 4% of the spot silver price at the time of delivery 2019-2021 average annual payable silver production of ~431koz, or ~5,600 gold equivalent ounces annually1 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 t...