Drill core from the Pine Point zinc-lead project Credit: Osisko Metals
MONTREAL – Osisko Metals announced that it has entered into an agreement with Osisko Gold Royalties to sell a 1.5% net smelter return royalty on the Pine Point project for $6.5 million.
On October 15, Osisko Metals announced that it has entered into an agreement with Karst Investments to acquire an outstanding 3% NSR royalty on the project for US$8.5 million and 2 million shares.
The company will grant Osisko Royalties a right of first offer on any future sales of royalties, streams or interests on Pine Point as well as a senior secured interest and first priority mortgage on the project as security.
Osisko Metals is also placing $7 million of its units, consisting of one share and one quarter of a warrant, with Osisko Gold Royalties through a non-brokered private placement.
Osisko Gold Royalties will be granted the right to maintain its relative equity holding through participation in future offerings as long as it maintains a 5% interest in Osisko Metals.
Proceeds will be used for exploration, to fund the Karst royalty purchase as well as for corporate purposes.
Osisko Gold Royalties currently holds a 10.5% interest in Osisko Metals, expected to increase to 19.8% on a fully diluted basis following closing.
Osisko Metals is advancing the Pine Point zinc-lead project in the Northwest Territories and zinc-lead-copper-silver projects in the Bathurst mining camp in New Brunswick.
For more information, visit www.OsiskoMetals.com.