Falco Agrees to Sell a Portfolio of Net Smelter Return Royalties
For Immediate Release TSX.V - FPC
FALCO AGREES TO SELL A PORTFOLIO OF NET SMELTER RETURN ROYALTIES
(Montreal, Québec, April 27, 2021) – Falco Resources Ltd. (FPC: TSX-V) (“Falco” or the “Corporation”)
is pleased to announce that it has concluded an agreement with Osisko Gold Royalties Ltd, (“Osisko”) to
sell its portfolio of net smelter return royalties (the “Royalties”) varying from 1% to 2% (the “ Royalty
Transaction”) which were acquired on April 12, 2021 from IAMGOLD Corporation pursuant to the exercise
of a right of first refusal it held over the Royalties. The Royalties relate to, among others, properties known
as Flavrian and Central Camp and which are exploration properties surrounding the main Horne 5
properties. The consideration for the sale of the Royalties by a subsidiary of Falco to Osisko is
CDN$700,000, payable in cash upon closing of the Royalty Transaction.
The Royalty Transaction is conditional upon certain closing conditions, including the waiver or expiry of
existing rights and the approval of the TSX Venture Exchange.
Related Party Transaction
Osisko’s subsidiary, Osisko Development Corp. (“ODEV”) is Falco’s largest shareholder owning a 18.2%
interest in Falco. Immediately prior to entering into the Royalty Transaction, Osisko had, directly or through
ODEV, beneficial ownership of, or control and direction over, (i) 41,385,240 common shares, representing
approximately 18.2% of the issued and outstanding common shares of the Corporation, and (ii) 18,247,344
warrants. In addition, Osisko’s loan to the Corporation is convertible into 31,992,975 common shares of the
Corporation.
The Royalty Transaction is a “related party transaction” under Regulation 61 -101 respecting Protection of
Minority Security Holders in Special Transactions (“Regulation 61-101”). It is exempt from the requirements
to obtain (i) a formal valuation and (ii) minority approval, pursuant to section 5.5(a) and 5.7 (a) respectively
of Regulation 61- 101, as the value of the Royalty Transaction represents less than 25% of the market
capitalization of Falco.
The independent directors of the Corporation have approved the Royalty Transaction and the board
members who are nominees or officers of Osisko or ODEV abstained from voting on the resolutions to
approve such transactions.
About Falco
Falco is one of the largest mineral claim holders in the Province of Québec, with extensive land holdings in
the Abitibi Greenstone Belt. Falco owns approximately 70,000 hectares of land in the Rouyn- Noranda
mining camp, which represents 70% of the entire camp and includes 13 former gold and base metal mine
sites. Falco’s principal asset is the Horne 5 Project located in the former Horne mine that was operated by
Noranda (now Glencore Canada Corporation) from 1927 to 1976 and produced 11.6 million ounces of gold
and 2.5 billion pounds of copper. Osisko Gold Royalties Ltd’s subsidiar y, Osisko Development Corp. is
Falco’s largest shareholder owning a 18.2% interest.
For further information, please contact:
Luc Lessard
President and Chief Executive Officer and Director
514-261-3336
Jeffrey White, LL.B, MBA
Director, Investor Relations
416-274-7762
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press
release.
Cautionary Statement on Forward-Looking Information
Certain information contained or incorporated by reference in this press release constitutes “forward-looking
statements”. In particular, this press release contains forward -looking statements including Falco’s ability to
meet all closing conditions and complete the Royalty Transaction.
Known and unknown factors could cause actual results to differ materially from those projected in the forward-
looking statements and undue reliance should not be placed on such statements and information.