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Osisko Metals Signs C$100 Million Investment Agreement With Appian Natural Resources Fund for a Joint Venture on Pine Point
MONTREAL, Feb. 22, 2023 (GLOBE NEWSWIRE) -- Osisko Metals Incorporated (the "Company or "Osisko Metals") (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51) is pleased t
About this update from Osisko Metals Incorporated
[{"type":"text","content":" MONTREAL, Feb. 22, 2023 (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 an investment agreement dated February 21, 2023 (the \"Investment Agreement\") with a subsidiary of Appian Natural Resources Fund III LP (\"Appian\"), a fund advised by Appian Capital Advisory LLP, a London-based private equity group specializing in the acquisition and development of mining assets, pursuant to which Osisko Metals and Appian have agreed to form a joint venture for the advancement of the Pine Point Project (the \"Transaction\"), subject to satisfaction of certain terms and conditions, including shareholder and stock exchange approvals. The Transaction is an arm's length transaction within the policies of the TSX Venture Exchange (the \"Exchange\"). Highlights Commitment by Appian to invest up to C$100 million over an estimated four-year period, to acquire an undivided 60% interest in Pine Point Mining Limited (\"PPML\"), a wholly-owned subsidiary of Osisko Metals and owner of the Pine Point Project, at a pre-money valuation of PPML of C$91.3 million. The C$100 million investment includes an estimated C$75.3 million of funding (C$19.8 million of which will be provided upon establishment of the joint venture, the \"Initial Subscription\") to advance the Pine Point Project to a Final Investment Decision (\"FID\"), or construction approval, and approximately C$24.7 million in cash payments to Osisko Metals, comprised of: A C$8.3 million initial payment on closing of the Transaction to acquire an initial 9% interest in PPML; and A milestone payment upon positive FID to bring Appian's ownership in PPML to 60%, expected to be approximately C$16.4 million. The final milestone payment will increase or decrease should the actual amount spent to FID differ from the estimated budget of C$75.3 million. In addition, Appian has agreed to make a C$5 million investment in the common shares of Osisko Metals on closing, priced at C$0.2481 per share (being the 20-day VWAP calculated as of the date of this announcement). Robert Wares, Chairman & CEO, commented: \"We are delighted to welcome Appian as a long-term joint-venture partner for the advancement of the Pine Point Project. This milestone agreement is a significant endorsement a...