Osisko Metals Announces C$5 Million Private Placement of Flow-through Shares
Osisko Metals Announces C$5 Million Private Placement of Flow-through Shares
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THE UNITED STATES /
(Montréal, Québec – December 2 , 20 21) Osisko Metals Incorporated (the "Corporation" or
"Osisko Metals") (TSX-V:OM; OTCQX: OMZNF; FRANKFURT: OB51) is pleased to announce
that it has entered into an agreement with Haywood Securities Inc. ("Haywood"), as sole agent
and bookrunner, in connection with a "best efforts" private placement of up to 10,417,000 common
shares of the Corporation that will qualify as "flow-through shares " (within the meaning of
subsection 66 (15) of the Income Tax Act (Canada)) ( "Flow-Through Shares "), at a price of
C$0.48 per Flow -Through Share (the "Issue Price "), for gross proceeds of up
to C$5,000,160 (the "Offering").
In addition, Haywood has been granted an option to sell up to an additional 2,083,400 Flow-
Through Shares at the Issue Price for additional gross p roceeds of up to C$1,000,032,
exercisable at any time by Haywood up to 48 hours prior to closing of the Offering.
The gross proceeds from the Offering will be used by the Corporation to incur eligible "Canadian
exploration expenses" that will qualify as "flow-through mining expenditures" (as such terms are
defined in the Income Tax Act (Canada)) (the "Qualifying Expenditures ") related to the
Corporation's Pine Point Zinc Project, located in the Northwest Territories . All Qualifying
Expenditures will be renounced in favour of the subscribers of the Flow -Through Shares
effective December 31, 2021.
The Corporation has agreed to pay a cash commission equal to 6.0% of the gross proceeds of
the Offering. The Offering is expected to close on or about December 22, 2021 and is subject to
certain closing conditions including, but not limited to, the receipt of all necessary approvals
including the conditional listing approval of the TSX Venture Exchange and the applicable
securities regulatory authorities. The Offering is being made by way of private placement
in Canada. The securities issued under the Offering will be subject to a hold period
in Canada expiring four months and one day from the closing date of the Offering.
The securities offered have not been registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration or an applicable
exemption from the registration requirements. This news release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State
in which such offer, solicitation or sale would be unlawful.
About Osisko Metals
Osisko Metals Incorporated is a Canadian exploration and development company creating value
in the base metal space. The Corporation controls two of Canada's premier past-producing zinc
mining camps: 1) the Pine Point Project that is located in the Northwest Territories, for which the
most-recently filed PEA in July 2020 has indicated an after -tax NPV of $500M and an IRR of
29.6%. The Pine Point Project PEA is based on current Mineral Resource Estimates that are
amenable to open pit and shallow underground mining and consist of 12.9Mt grading 6.29% ZnEq
of Indicated Mineral Resources and 37.6Mt grading 6.80% ZnEq of Inferred Mineral Resources.
Please refer to the technical report entitled "Preliminary Economic Assessment, Pine Point
Project, Hay River, North West Territories, Canada" dated July 30, 2020 (with an effective date of
June 11, 2020), which has been prepared by BBA Inc. and WSP Canada Inc. for Osisko Metals,
a copy of which is available on SEDAR (www.sedar.com) under Osisko Metals' issuer profile. The
Pine Point Project is located on the south shore of Great Slave Lake in the Northwest Territories,
near infrastructure, paved highway access, and has 100 kilometres of viable haulage roads
already in place; 2) The Bathurst Mining Camp projec ts are located in northern New Brunswick.
The company has optioned the majority of its holding in the Bathurst Camp to Brunswick
Exploration, pending TSXV approval for the transaction.
The current Mineral Resources mentioned in this news release conform to National Instrument
43-101 – Standards of Disclosure for Mineral Projects and were prepared by independent
qualified persons, as defined by NI 43-101 guidelines. The abovementioned Mineral Resources
are not Mineral Reserves as they do not have demonstrated economic viability. The quantity and
grade of the reported Inferred Mineral Resources are conceptual in nature and are estimated
based on limited geological evidence and sampling. Geological evidence is sufficient to imply but
not verify geological grad e and/or quality of continuity. Zinc equivalency percentages are
calculated using metal prices, forecasted metal recoveries, concentrate grades, transport costs,
smelter payable metals and charges (see respective technical reports for details).
For further information on this news release, visit www.osiskometals.com or contact:
Robert Wares, CEO
Osisko Metals Incorporated
Email: [email protected]
www.osiskometals.com
Neither 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 release.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward‐looking information" within the meaning of the applicable
Canadian securities legislation that is based on expectations, estimates, projections and
interpretations as at the date of this news release. The information in this news release about the
Offering; the use of the pro ceeds from the Offering; the jurisdictions in which the Flow -Through
Shares are offered or sold; the number of Flow -Through Shares offered or sold; the gross
proceeds from the Offering; the timing and ability of the Corporation to close the Offering, if at all;
the timing and ability of the Corporation to satisfy the listing conditions of the TSX Venture
Exchange, if at all; the tax treatment of the Flow -Through Shares; the timing of the renounce of
the Qualifying Expenditures in favor of the subscribers, i f at all; the prospects of the Pine Point
Mining Camp and the Bathurst Mining Camp; and any other information herein that is not a
historical fact may be "forward-looking information". Any statement that involves discussions with
respect to predictions, e xpectations, interpretations, beliefs, plans, projections, objectives,
assumptions, future events or performance (often but not always using phrases such as
"expects", or "does not expect", "is expected", "interpreted", "management's view", "anticipates"
or "does not anticipate ", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or
"intends" or variations of such words and phrases or stating that certain actions, events or results
"may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements
of historical fact and may be forward -looking information and are intended to identify forward -
looking information. This forward -looking information is based on reasonable assumptions and
estimates of management of the Corporation, at the time such assumptions and estimates were
made, and involves known and unknown risks, uncertainties or other factors which may cause
the actual results, performance or achievements of the Corporation to be materially different from
any future results, performance or achievements expressed or implied by such forward -looking
information. Such factors include, among others, risks relating to the Offering; volatility in the
trading price of common shares of the Corporation; r isks relating to the ability of the Corporation
to obtain required approvals, complete definitive documentation and complete the Offering on the
terms announced; ability of Osisko Metals to complete further exploration activities; property
interests; the results of exploration activities; risks relating to mining activities; the global economic
climate; metal prices; dilution; environmental risks changes in the tax and regulatory regime; and
community and non-governmental actions. Although the forward-looking information contained in
this news release is based upon what management believes, or believed at the time, to be
reasonable assumptions, the Corporation cannot guarantee shareholders and prospective
purchasers of securities of the Corporation that actual results will be consistent with such forward-
looking information, as there may be other factors that cause results not to be as anticipated,
estimated or intended, and neither Corporation nor any other person assumes responsibility for
the accuracy and completeness of any such forward looking information. Corporation does not
undertake, and assumes no obligation, to update or revise any such forward looking statements
or forward-looking information contained herein to reflect new events or circumstances, except
as may be required by law.