15 October 2019
Osisko Metals Incorporated is pleased to announce that it has entered into a binding term sheet with Karst Investments LLC ("Karst") and its owners to acquire a 100% interest in Karst, which holds a 3% net smelter returns royalty on the mineral leases comprising the Pine Point Project (the "Karst Purchase"). Osisko Metals will acquire Karst in exchange for an aggregate consideration of US$8.5 million in cash and 2 million common shares of the Corporation.
Osisko Metals will, within 60 days, enter into a definitive purchase agreement with Karst and its owners providing for the Karst Purchase.
Following the closing of the Karst Purchase, the Pine Point Project will not be subject to any other royalties, back-in rights, payments, or other agreements or encumbrances other than the territorial royalty (calculated as a tax but called a royalty by the NWT government).
Paul Dumas, Executive VP Finance, commented: “We are very pleased to have acquired the outstanding 3% NSR on Pine Point at an early development stage. This allows us to unencumber the asset as we continue to grow the mineral resource base. This acquisition is strategic as it will provide Osisko Metals financial flexibility in the future as we continue to advance Pine Point.”
Completion of the Karst Purchase is subject to the satisfaction of certain closing conditions, including, but not limited to, entering into a definitive purchase agreement with Karst and its owners and the receipt of all necessary approvals, including the conditional approval of the TSX Venture Exchange.