Business
Riley Gold Announces US$2.6 Million Investment From Osisko Gold Royalties
VANCOUVER, British Columbia, Nov. 21, 2022 (GLOBE NEWSWIRE) -- Riley Gold Corp. (TSX.V: RLYG) (OTCQB: RLYGF) (“Riley Gold” or the “Company”) is pleased to annou
About this update from Riley Gold Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, Nov. 21, 2022 (GLOBE NEWSWIRE) -- Riley Gold Corp. (TSX.V: RLYG) (OTCQB: RLYGF) (“Riley Gold” or the “Company”) is pleased to announce the completion of a US$2.6 million investment (the “Investment”) from Osisko Gold Royalties Ltd (“Osisko”) (NYSE:OR & TSE:OR) in exchange for royalties on projects held by Riley Gold’s wholly owned Nevada subsidiary, RRC Exploration Inc. (“RRC”) including: a 2.0% net smelter return (“NSR”) royalty on Riley Gold’s Pipeline West/Clipper Gold Project (“PWC”), located in Lander County, Nevada; a 0.5% NSR royalty on its Tokop Gold Project (“Tokop”), located in Esmeralda County, Nevada; and an assignment of certain royalty buy-back rights on PWC, held by RRC. The form of NSR royalty to be granted by RRC to Osisko is dependent on the Company’s land holdings as described in the Transactions Details below. Highlights: The Investment provides the following benefits to Riley Gold: Establishes a royalty partnership with Osisko, an established, and well respected, gold royalty company. Provides a less dilutive source of funds to replenish the Company’s treasury. Allows Riley Gold to continue its various workstreams including continued exploration at PWC (adjoining Nevada Gold Mines - Cortez complex). “We are extremely pleased to have Osisko endorse and support our work in Nevada, particularly at PWC, by way of the Investment. We believe that this transaction delivers significant value to our shareholders through our ability to limit equity dilution given the current challenging state of the equity markets. Our goal is to put this capital to work through exploration and development initiatives on our highly prospective Nevada properties to generate further shareholder value,” commented Todd Hilditch, CEO of Riley Gold. Transaction Details Riley Gold, together with RRC, and Osisko have entered into an Investment Agreement and Royalty Agreements whereby Riley Gold has granted, where applicable, a direct NSR royalty interest on land owned by RRC and an overriding NSR royalty interest on land currently held under option or lease by RRC, that includes a 2.0% NSR royalty on PWC and a 0.5% NSR royalty on Tokop. RRC has also assigned to Osisko certain rights (currently held by RRC) to buy-back NSR royalties (ranging from 0.75% to 1.5%) from current landowners on...