Business
Osisko Metals Announces Agreement to Purchase 3% NSR Royalty on Pine Point Project
MONTREAL, Oct. 15, 2019 (GLOBE NEWSWIRE) -- Osisko Metals Incorporated (the “Company” or “Osisko Metals”) (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51) is pleased
About this update from Osisko Metals Incorporated
[{"type":"text","content":" MONTREAL, Oct. 15, 2019 (GLOBE NEWSWIRE) -- Osisko Metals Incorporated (the “Company” or “Osisko Metals”) (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51) is pleased to announce that it has entered into a binding term sheet with Karst Investments LLC (\"Karst\") and its owners to acquire a 100% interest in Karst, which holds a 3% net smelter returns royalty on the mineral leases comprising the Pine Point Project (the \"Karst Purchase\"). Osisko Metals will acquire Karst in exchange for an aggregate consideration of US$8.5 million in cash and 2 million common shares of the Corporation. Osisko Metals will, within 60 days, enter into a definitive purchase agreement with Karst and its owners providing for the Karst Purchase. Following the closing of the Karst Purchase, the Pine Point Project will not be subject to any other royalties, back-in rights, payments, or other agreements or encumbrances other than the territorial royalty (calculated as a tax but called a royalty by the NWT government). Paul Dumas, Executive VP Finance, commented: “We are very pleased to have acquired the outstanding 3% NSR on Pine Point at an early development stage. This allows us to unencumber the asset as we continue to grow the mineral resource base. This acquisition is strategic as it will provide Osisko Metals financial flexibility in the future as we continue to advance Pine Point.” Completion of the Karst Purchase is subject to the satisfaction of certain closing conditions, including, but not limited to, entering into a definitive purchase agreement with Karst and its owners and the receipt of all necessary approvals, including the conditional approval of the TSX Venture Exchange. About Osisko Metals Osisko Metals Incorporated is a Canadian exploration and development company creating value in the base metal space with a focus on zinc mineral assets. The Company controls Canada’s two premier zinc mining camps. The Company’s flagship properties are: 1) the Pine Point Mining Camp (“PPMC”), located in the Northwest Territories, has an Inferred Mineral Resource of 38.4 Mt grading 4.58% zinc and 1.85% lead (6.58% ZnEq), making it the largest pit-constrained zinc deposit in Canada (please refer to the Amended Technical Report filed on SEDAR for further information). The PPMC is located on the south shore of Great Slave Lake in the Northwest Territories, near ...