Falco Announces an Additional $10 Million Secured Loan with Osisko GOLD Royalties
For Immediate Release TSXV:FPC
FALCO ANNOUNCES AN ADDITIONAL $10 MILLION SECURED LOAN WITH OSISKO GOLD ROYALTIES
All dollar amounts are in Canadian dollars unless otherwise specified.
(Montreal, Québec, February 22, 2019) – Falco Resources Ltd. (TSXV: FPC) ("Falco" or the "C ompany") is
pleased to announce the execution of a secured seni or loan agreement with Osisko Gold Royalties Ltd (T SX:
OR) ("Osisko") pursuant to which Osisko has agreed to loan an additional $10 million to Falco.
$10 MILLION SECURED LOAN
Under the terms of a secured senior loan agreement (the "Loan Agreement"), Osisko has provided Falco with a
$10 million loan (the “Principal Amount”) payable i n two instalments of $5,000,000. The loan has a mat urity
date of December 31, 2019 and interest shall be pay able on the Principal Amount at a rate per annum th at is
equal to 7%, compounded quarterly. Accrued interest shall be payable upon repayment of the Principal
Amount. The Principal Amount shall be repaid at the latest on December 31, 2019.
The loan will be used for the advancement of the Horne 5 Project and for general corporate purposes.
The entering into the Loan Agreement is considered to be a "related party transaction" under Regulation 61-
101 respecting Protection of Minority Security Hold ers in Special Transactions ("Regulation 61-101") but is
exempted from the requirements to obtain a formal valuation pursuant to section 5.5(b) of Regulation 61-101,
as the common shares of Falco (the "Common Shares") are not listed on any of the specified markets. Th e
transaction is also exempted from the requirement t o obtain minority approval pursuant to 5.7(1)f) of
Regulation 61-101, as the loan (i) is on reasonable commercial terms that are not less advantageous to the
Company than if the loan was obtained from an arm's length party, and (ii) is not convertible, directl y or
indirectly, into equity or voting securities of the Company.
As previously announced, the Company is still targe ting being in a position to complete in the first q uarter of
2019, its previously announced financing transactio n pursuant to which Osisko agreed to commit up to $ 180
million through a silver stream transaction toward the funding of the development of the Horne 5 Project.
About Falco
Falco Resources Ltd. is one of the largest mineral claim holders in the Province of Québec, with exten sive land
holdings in the Abitibi Greenstone Belt. Falco owns rights on about 67,000 hectares of land in the Rou yn-
Noranda mining camp, which represents approximately 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 from 1927 to 1976 and produ ced 11.6 million ounces of gold and 2.5 billion pou nds
of copper. Osisko is the largest shareholder of the Company and currently owns 17.8% of the issued and
outstanding shares of the Company. The Company has 202,624,945 shares issued and outstanding.
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For further information contact:
Luc Lessard
President and Chief Executive Officer
514-261-3336
Amélie Laliberté
Coordinator, Investor Relations
418 455-4775
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 Note Regarding Forward-Looking Statements
This news release contains forward-looking statemen ts and forward-looking information (together, “forw ard-
looking statements”) within the meaning of applicable securities laws. All statements, other than statements of
historical facts, are forward-looking statements, a nd subject to risks and uncertainties. Generally, f orward-
looking statements can be identified by the use of terminology such as “plans”, “seeks”, “expects”, “estimates”,
“intends”, “anticipates”, “believes”, “could”, “mig ht”, “likely” or variations of such words, or state ments that
certain actions, events or results “may”, “will”, “ could”, “would”, “might”, “will be taken”, “occur”, “be
achieved” or other similar expressions. Forward-loo king statements, including statements concerning th e
Company’s use of proceeds from the loan. Forward-lo oking statements are subject to business and econom ic
factors and uncertainties, and other factors that c ould cause actual results to differ materially from these
forward-looking statements, including the obtaining of all required authorizations from third parties on terms
acceptable to the Company and in a timely manner an d those risks set out in Falco's public documents,
including in each management discussion and analysis, filed on SEDAR at www.sedar.com. Furthermore, should
one or more of the risks, uncertainties or other fa ctors materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described in forward-looking statements or
information. These risks, uncertainties and other f actors include, among others, political, economic,
environmental and permitting risks, regulatory restrictions, mining operational and development risks, litigation
risks, regulatory restrictions, environmental and p ermitting restrictions and liabilities, internal an d external
approval risks, changes in the use of proceeds rela ting to the Secured Loan, currency fluctuations, gl obal
economic climate, dilution, share price volatility, competition, loss of key employees, additional fun ding
requirements, and defective title to mineral claims or property. Although Falco believes that the assu mptions
and factors used in preparing the forward-looking s tatements are reasonable, undue reliance should not be
placed on these statements, which only apply as of the date of this news release, and no assurance can be given
that such events will occur in the disclosed times frames or at all. Except where required by applicab le law,
Falco disclaims any intention or obligation to upda te or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.