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ZINC-LEAD: Osisko initiates friendly takeover of Pine Point



MONTREAL and TORONTO – Osisko Metals has announced its intention to acquire all of the issued and outstanding common shares of Pine Point Mining in a friendly takeover. A newly formed company (Spinco) will be created to hold all of the assets and liabilities of Pine Point.

Historical drill core – and lots of it – at the Pine Point camp. (Image: Pine Point Mining)

Under the terms of the agreement, Pine Point shareholders are to receive 0.271 of an Osisko common share; 0.0677 of an Osisko common share purchase warrant; and 1 common share of Spinco. The warrants are exercisable at a price of $1.50 per Osisko share within 12 months of closing. The Spinco shares are to be consolidated on a 10:1 basis.

Osisko Metals is quickly becoming the next up and coming base metal company. Not content with its considerable exploration success in New Brunswick’s Bathurst camp, the company will soon have a solid footing in the Northwest Territories’ Pine Point base metal camp.

The Pine Point zinc-lead project is almost shovel ready. A positive preliminary economic assessment was filed in May 2017. Selected open pit deposits totaling 25.8 million indicated tonnes grading 2.9% zinc and 1.1% lead were included. The inferred portion is 3.7 million tonnes grading 2.9% zinc and 0.8% lead. As a former producer, the Pine Point camp also has historical resources that are not 43-101 compliant.

The PEA put the after tax net present value of the project at $210.5 million and the internal rate of return at 34.5%. The pre-production capex requirement is $153.8 million, and the sustaining capital is $117.5 million. A payback period of 1.8 years is projected.

Technical reports for Pine Point are posted at www.PinePointMining.com.


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1 Comment » for ZINC-LEAD: Osisko initiates friendly takeover of Pine Point
  1. Steve J says:

    This puts Osisko Metals on the forefront! 30 mill+ on hand With a lifeline to Osisko Mining and Osisko Royalties … will be sure to be moving this forward quickly. Following smart money, the Lundins and Osisko camp. $2 by march is my guess.

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