Osisko will acquire 14 million flow-through common shares of NioGold for total proceeds of
Osisko will acquire these 14 million flow-through common shares of NioGold for investment purposes and other than these shares, Osisko has no current intention to increase the beneficial ownership of, or control or direction over, additional securities of NioGold. These shares are being acquired by Osisko pursuant to applicable exemptions from the prospectus requirements and will be subject to a four-month hold period.
Purchase of Right to Repurchase Marban and Malartic Hygrade-NSM Royalties
Osisko to pay
a. The right to repurchase for the price of
$1,000,000: i. 0.25% NSR on the Marban claims ii. 0.5% NSR on the First Canadian claims iii.1.0% NSR on the Norlartic claims b. The right to repurchase for the price of $1,000,000: i. 1.0% NSR on the Malartic Hygrade-NSM claims
Upon closing of the transaction, Osisko will own 23,598,500 common shares of NioGold, or approximately 19.5% of NioGold's issued and outstanding common shares. The definitive agreement for the transaction will also include the following key terms:
1. NioGold to relocate its head office to
Montreal, Quebec2. NioGold board to be reconstituted to include two Osisko nominees, two NioGold nominees and one nominee to be jointly determined by Osisko and NioGold, for a total of five directors.
The transaction is subject to customary conditions, including the satisfactory completion of Osisko's due diligence on NioGold's assets, the negotiation and entering into by both parties of a definitive agreement and regulatory approval from the
About NioGold Mining Corporation
NioGold is a mineral exploration company focused on gold. Its flagship projects are located in the
Osisko is a gold-focused royalty and stream company whose cornerstone asset is a 5% NSR royalty on the
Osisko's head office is located at 1100 Avenue des Canadiens-de-
Certain statements contained in this press release may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Osisko expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur including, without limitation, the satisfaction of conditions to the completion of this transaction, the realization of the anticipated benefits of this transaction, the performance of the assets of Osisko and any acquired assets the potential of Osisko. Although Osisko believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include, the results of efforts to satisfy the conditions, including regulatory approvals, gold prices, Osisko's royalty interest, access to skilled consultants, results of mining operation, exploration and development activities, with production and development stage mining operations, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government or court approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations market prices, continued availability of capital and financing and general economic, market or business conditions.
These factors are discussed in greater detail in Schedule I to the management information circular of
FOR FURTHER INFORMATION PLEASE CONTACT:
John BurzynskiSenior Vice President New Business Development (416) 363-8653 firstname.lastname@example.org Sylvie Prud'hommeDirector of Investor Relations (514) 940-0670 email@example.com Source: Osisko Gold Royalties Ltd.