10 December 2020
Osisko Metals Incorporated is pleased to announce a financing package totaling $8.5 million, comprising (a) the grant of a further 0.5% net smelter returns ("NSR") royalty to Osisko Gold Royalties Ltd ("Osisko Royalties") on the Pine Point Project for cash consideration of $6.5 million and (b) a non-brokered private placement of up to 4.2 million units of the Company (each, a "Unit") at a price of $0.48 per Unit for gross proceeds of up to $2 million (the "Offering"), as more particularly described below.
Royalty Financing
Osisko Metals and Osisko Royalties have agreed to amend (the "NSR Amendment") the existing 1.5% NSR royalty held by Osisko Royalties on the Pine Point Project (see news release dated December 3, 2019). Pursuant to the NSR Amendment, Osisko Metals will grant a further 0.5% NSR royalty to Osisko Royalties on the Pine Point Project for cash consideration of $6.5 million, which will result in Osisko Royalties holding a combined 2% NSR royalty on the Pine Point Project. The 2% NSR royalty held by Osisko Royalties on the Pine Point Project is not subject to buy-back rights in favour of Osisko Metals.