3 December 2019
Osisko Metals Incorporated is pleased to announce that it has entered into a binding term sheet with Osisko Gold Royalties Ltd, pursuant to which Osisko Gold Royalties will acquire, subject to the closing by the Corporation of the previously announced purchase of the Karst Royalty (see press release dated October 15, 2019), half of such Karst Royalty, representing a 1.5% net smelter return royalty on the Corporation’s 100%-owned Pine Point Project, in consideration for a cash purchase price of C$6.5M. Pursuant to the terms of the Agreement, in connection with the NSR Sale, the Corporation will grant Osisko Gold Royalties a right of first offer on any future sales by the Corporation of any additional royalties, streams or similar interests on the Pine Point Project. Additionally, the Corporation and Osisko Gold Royalties agreed to amend the terms of the Target Royalty to include, without limitation, the grant by the Corporation to Osisko Gold Royalties of a continuing senior secured interest and first priority mortgage on the Pine Point Project as security for the Corporation’s obligations in respect of the Target Royalty.