/ Osisko Metals Announces Closing of Fully-Subscribed $3 Million Non-Brokered Private Placement of Units
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/ NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES /
OSISKO METALS ANNOUNCES CLOSING OF FULLY-SUBSCRIBED
$3 MILLION NON-BROKERED PRIVATE PLACEMENT OF UNITS
MONTREAL, August 10, 2020 -- Osisko Metals Incorporated (the "Corporation" or "Osisko Metals") (TSXV:
OM; OTCQX: OMZNF; FRANKFURT: 0B51) is pleased to announce that it has closed its previously -
announced non-brokered private placement, p ursuant to which the Corporation sold an aggregate of 7.5
million units of the Company (each, a " Unit") at a price of $0.40 per Unit for aggregate gross proceeds of
$3 million (the " Offering"). Each Unit consists of one common share of the Company (each, a " Common
Share") and one-half -of-one common share purchase warrant of the Company (each whole warrant, a
"Warrant"). Each Warrant entitles the holder thereof to acquire one Common Share at a price of $0.52 per
share for a 24-month period following the closing date of the Offering.
The net proceeds from the Offering will be used for the development of Osisko Metals' Pine Point Project,
specifically for continued historical core relogging program and drilling, environmental baseline field work,
as well as general corporate purposes.
The Corporation paid an aggregate of $51,000 to certain arm's length finders on a portion of the Offering.
The following "insiders" of the Company have subscribed for Units under the Offering:
Insider Category Number of Units Subscription Amount
Osisko Gold Royalties
Ltd
10% Security Holder 1,250,000 $500,000
Robert Wares 10% Security Holder; CEO and
Chairman
1,250,000 $500,000
Jeff Hussey Director and Senior Officer 187,500 $75,000
Totals 2,687,500 $1,075,000
Osisko Mining Inc. also subscribed for 1,250,000 Units as part of the Offering, representing a subscription
amount of $500,000.
Robert Wares, Chairman & CEO of Osisko Metals, commented: “ With the closing of this financing we c an
proceed with environmental baseline field work and drilling at Pine Point . COVID-19 restrictions in the
NWT only allow one drill to operate at this time, but more will be added to the resource definition and
expansion program as soon as safety regulations permit”.
Each subscription by an "insider" is considered to be a "related party transaction " for purposes of
Multilateral Instrument 61 -101 – Protection of Minority Security Holders in Special Transactions ("MI 61-
101") and Policy 5.9 – Protection of Minority Security Holders in Special Transactions of the TSX Venture
Exchange. Pursuant to MI 61-101, the Corporation has filed a material change report providing disclosure
in relation to each "related party transaction " on SEDAR ( www.sedar.com) under Osisko Metals ' issuer
profile. The Corporation did not file the material change report more than 21 days before the expected
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closing date of the Offering as the details of the Offering and the participation therein by each "related
party" of the Corporation were not confirmed until shortly prior to the closing of the Offering, and the
Corporation wished to close the Offering on an expedited basis for sound business reasons. The
Corporation is relying on exemptions from the formal valuation and minority shareholder approval
requirements available under MI 61-101. The Corporation is exempt from the formal valuation requirement
in section 5.4 of MI 61 -101 in reliance on sections 5.5(a) and (b) of MI 61 -101 as the fair market va lue of
the transaction, insofar as it involves interested parties, is not more than the 25% of the Corporation 's
market capitalization, and no securities of the Corporation are listed or quoted for trading on prescribed
stock exchanges or stock markets. Ad ditionally, the Corporation is exempt from minority shareholder
approval requirement in section 5.6 of MI 61 -101 in reliance on section 5.7(b) as the fair market value of
the transaction, insofar as it involves interested parties, is not more than the 25% of the Corporation 's
market capitalization.
All securities issued under the Offering are subject to a four month hold period which will expire December
8, 2020. The Offering is subject to final acceptance of the TSX Venture Exchange. 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 press 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 with a focus on zinc mineral assets. The Company controls two of Canada's past -producing
premier zinc mining camps: 1) the Pine Point Mining Camp ("PPMC"), located in the Northwest Territories,
for which the recently-released PEA results have indicated an after -tax NPV of $500M and IRR of 29.6%.
The PPMC hosts 12.9Mt of Indicated Mineral Resources grading 6.29% ZnEq and 37.6Mt of Inferred Mineral
Resources grading 6.80% ZnEq. The PPMC is located on the sou th shore of Great Slave Lake in the
Northwest Territories, near infrastructure and paved highway access and with 100 kilometres of viable
haulage roads already in place. For additional information on the recently -released PEA results on PPMC,
please see th e news release of Osisko Metals dated June 15, 2020 and entitled "Osisko Metals Releases
Positive Pine Point PEA; After -Tax NPV of C$500M and IRR of 29.6%" . 2) The Bathurst Mining Camp
("BMC"), located in northern New Brunswick, has Indicated Mineral Resources of 1.96 Mt grading 5.77%
zinc, 2.38% lead, 0.22% copper and 68.9g/t silver (9.00% ZnEq) and Inferred Mineral Resources of 3.85 Mt
grading 5.34% zinc, 1.49% lead, 0.32% copper and 47.7 g /t silver (7.96% ZnEq) in the Key Anacon and
Gilmour South deposits. For additional information on BMC mineral resource estimate, please see the
technical report entitled "NI 43 -101 Maiden Resource Estimate for the Bathurst Mining Camp, New
Brunswick, Canada" dated April 4, 2019 (with an effective date of February 20, 2019) which has been
prepared by AGP Mining Consultants Inc. for Osisko Metals, and is available on SEDAR (www.sedar.com)
under Osisko Metals' issuer profile.
The scientific and technical information in this news release has been disclosed in accordance with National
Instrument 43-101 – Standards of Disclosure for Mineral Projects 43-101 ("NI 43-101") and was prepared
by independent qualified persons (each as defined in NI 43-101). The above-mentioned 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 grade
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 supporting
technical report for additional details).
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Mr. Robin Adair, P.Geo and Vice President Exploration of Osisko Metals, is the "qualified person" (as
defined in NI 43 -101) who has reviewed and approved of the scientific and technical information in this
news release.
For further information on this news release, visit www.osiskometals.com or contact:
Killian Charles
VP Corporate Development
(514) 861-4441
Email: [email protected]
www.osiskometals.com
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 closing of the Offering (if at all); the
demand for Units (if any); the use of proceeds of the Offering; the approval of the TSX Venture Exchange
relating to the Offering; and any other info rmation herein that is not a historical fact may be "forward-
looking information". Any statement that involves discussions with respect to predictions, expectations,
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 Company at the time such assumptions and estimates were made, and involves
known and unknown risks, uncertainties and other factors which may cause the actual results, performance
or achievements of Osisko Metals to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking information. Such factors include, but are not
limited to, capital and operating costs varying significantly from estimates; the preliminary nature of
metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or
other project approvals; uncertainties relating to the availability and costs of financing needed in the future;
changes in equity markets; inflation; fluctuations in commodity prices; delays in the development of
projects; the other risks involved in the mineral exploration and development industry; and those risks set
out in the Company's public documents filed on SEDAR (www.sedar.com) under Osisko Metals' issuer profile.
Although the Company believes that the assumptions and factors used in preparing the forward-loo king
information in this news release are reasonable, undue reliance should not be placed on such information,
which only applies as of the date of this news release, and no assurance can be given that such events will
occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or
revise any forward-looking information, whether as a result of new information, future events or otherwise,
other than as required by law.
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 news
release.