Sable Resources (TSXV: SAE) says agreements potentially worth up to $12.6 million with Osisko Gold Royalties (TSX: OR) will finance exploration across its projects for the next four years.
Osisko is taking a 9.86% stake for $2.08 million in the junior grassroots explorer — acquiring 16 million units at 13¢ per unit — a 12% premium to Sable’s 30-day volume-weighted average price per share.
Each unit consists of one common share and one-half of a common share purchase warrant, exercisable for three years at a price of 21¢ per share.
In addition, the two companies will also enter into a royalty purchase agreement that will enable Osisko to acquire a 1% net smelter return (NSR) royalty on Sable’s properties in Mexico for $5 million. The royalty will encompass any other properties Sable acquires in Mexico over a four-year period.
Continue reading at The Northern Miner.