Osisko Advances Trixie Mine with $20 Million Streaming Agreement, Utah
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Osisko Gold Royalties’ wholly-owned subsidiary, Osisko Bermuda Limited (OBL) has entered into a binding metals stream agreement with Tintic Consolidated Metals, an indirect wholly-owned subsidiary of Osisko Development Corp. (ODV) on the Trixie test mine, as well as mineral claims covering more than 17,000 acres in Central Utah’s historic Tintic Mining District.
STREAM DETAILS
• Upfront Deposit: OBL will make an upfront cash payment to TCM totaling US$20 million, with the proceeds to be used to fund the development of the Trixie Mine and Tintic Property.
• Streamed Metal: OBL will purchase 2.5 percent of all metals produced from the Tintic Property until 27,150 ounces of refined gold have been delivered. Thereafter, OBL will purchase 2 percent of all metals produced from the Tintic Property for the remaining life of mine.
• Production Payments: OBL will make ongoing payments for refined metal delivered to the stream equal to 25 percent of the spot prices on the day prior to the date of delivery.
• Security: The stream shall be a senior secured, first ranking obligation of ODV, inclusive of guarantees.
• Area of Interest: The stream shall be referenced to production from the entire Tintic Property, including the Trixie Mine.
ODV’s near term plan is to initiate underground and at surface drilling while it continues exploration development and processing of the mineralized material at the Trixie Mine. Drilling is targeting support for preparation of an initial resource statement pursuant to national instrument 43-101 over the next twelve months. Concurrently, ODV will complete advanced technical studies on the Tintic Property to generate additional surface and underground targets, conduct metallurgical testing, geotechnical work and environmental studies to justify further development as well as increase production through a low-capital expenditure expansion.
ODV has closed its acquisition of a 100 percent interest in the Trixie Mine and Tintic Property, and satisfied the escrow release conditions relating to issuances of subscription receipts of ODV. Following completion of the transactions, Osisko’s ownership interest in ODV is now approximately 45 percent.
About Osisko Gold Royalties Ltd
Osisko is an intermediate precious metal royalty company focused on the Americas that commenced activities in June 2014. Osisko holds a North American focused portfolio of over 165 royalties, streams and precious metal offtakes. Osisko’s portfolio is anchored by its cornerstone asset, a 5 percent net smelter return royalty on the Canadian Malartic mine, which is the largest gold mine in Canada.
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