30 December 2020
Osisko Metals Incorporated is pleased to announce that it has closed its previously-announced royalty financing pursuant to which Osisko Gold Royalties Ltd was granted a further 0.5% net smelter returns royalty on the Pine Point Project for cash consideration of $6.5 million. After giving effect to the NSR Amendment, Osisko Royalties now holds a combined 2% NSR royalty on the Pine Point Project (which is not subject to buy-back rights in favor of Osisko Metals).
The Corporation is also pleased to announce that it has closed its previously-announced non-brokered private placement, pursuant to which the Corporation sold an aggregate of 4,130,250 units of the Corporation at a price of $0.48 per Unit for aggregate gross proceeds of $1,982,520. Each Unit consists of one common share of the Corporation and one-half-of-one common share purchase warrant of the Corporation. Each Warrant entitles the holder thereof to acquire one Common Share at a price of $0.58 per share for a 24-month period following the closing date of the Offering.
The net proceeds from the Offering will be used for the development of Osisko Metals' Pine Point Project, specifically drilling and hydrogeological studies, as well as general corporate purposes.