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Osisko Metals Announces Sale of 1.5% NSR Royalty on Pine Point Project and $7M Non-Brokered Private Placement
MONTRÉAL, Dec. 03, 2019 (GLOBE NEWSWIRE) -- Osisko Metals Incorporated (the "Corporation" or "Osisko Metals") (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51) is plea
About this update from Osisko Metals Incorporated
[{"type":"text","content":" MONTRÉAL, Dec. 03, 2019 (GLOBE NEWSWIRE) -- Osisko Metals Incorporated (the \"Corporation\" or \"Osisko Metals\") (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51) is pleased to announce that it has entered into a binding term sheet (the “Agreement”) with Osisko Gold Royalties Ltd (“Osisko Gold Royalties”), pursuant to which Osisko Gold Royalties will acquire, subject to the closing by the Corporation of the previously announced purchase of the Karst Royalty (see press release dated October 15, 2019), half of such Karst Royalty, representing a 1.5% net smelter return royalty (the “Target Royalty”) on the Corporation’s 100%-owned Pine Point Project, in consideration for a cash purchase price of C$6.5M (the “NSR Sale”). Pursuant to the terms of the Agreement, in connection with the NSR Sale, the Corporation will grant Osisko Gold Royalties a right of first offer on any future sales by the Corporation of any additional royalties, streams or similar interests on the Pine Point Project. Additionally, the Corporation and Osisko Gold Royalties agreed to amend the terms of the Target Royalty to include, without limitation, the grant by the Corporation to Osisko Gold Royalties of a continuing senior secured interest and first priority mortgage on the Pine Point Project as security for the Corporation’s obligations in respect of the Target Royalty. Osisko Metals also wishes to announce a non-brokered private placement of 14,000,000 units of the Corporation (“Units”) at $0.50 per Unit for gross proceeds of up to C$7,000,000 (the “Offering”). Each Unit will consist of one common share of the Corporation (each a “Common Share”) and one quarter (1/4) of one Common Share purchase warrant (each whole Common Share purchase warrant a “Warrant”). Each Warrant will entitle the holder to acquire for 36 months following the closing of the Offering an additional Common Share at a price per Common Share that shall be equal to the higher of: i) a 25% premium to the 10 day volume weighted average price of the Common Shares as at the closing date of the Offering; and ii) $0.50. Pursuant to the terms of the Agreement, Osisko Gold Royalties has agreed, subject to receipt of requisite approvals, including the approval of the TSX Venture Exchange, to acquire 14,000,000 Units pursuant to the Offering. In connection the NSR Sale, following the completion of the ...