Osisko Metals Announces Corporate Changes and Execution of Royalty Sale on Pine Point
Osisko Metals Announces Corporate Changes and Execution of Royalty Sale
on Pine Point
MONTRÉAL, Jan. 28, 2020 -- Osisko Metals Incorporated (the " Company" or " Osisko Metals") ( TSX-V: OM ; OTCQX:
OMZNF; FRANKFURT: 0B51) announces that the Board of Directors has appointed Mr. Robert Wares as Chief Executive
Officer of the Company and Mr. Jeff Hussey as Chief Operating Officer. Mr. Wares will also maintain his role as Chairman and
Mr. Hussey will continue to serve as President of the Company.
Mr. Robert Wares commented: “The fine-tuning of these senior roles will improve efficiencies, allowing Mr. Hussey to
concentrate on operations at the Pine Point Project as we move towards more advanced exploration and development, while I
focus on marketing, goal-setting and corporate strategies. I would like to take this opportunity to thank staff, Board members
and shareholders for their support as we advance one of Canada’s premier zinc projects.”
The Company also announces that it has completed the sale of a 1.5% net smelter return royalty (the “NSR”) on the
Company’s 100%-owned Pine Point Project to Osisko Gold Royalties Ltd (“Osisko Gold Royalties”), as previously announced
in the Company’s December 3, 2019 news release disclosing the signing of a binding term sheet between Osisko Metals and
Osisko Gold Royalties (the “Agreement”).
Pursuant to the terms of the Agreement, in connection with the sale of the NSR, the Company has received a cash
consideration of $C6.5M and has granted to Osisko Gold Royalties a right of first offer on any future sales by the Company of
any additional royalties, streams or similar interests on the Pine Point Project. The Company’s obligations in relation to the
NSR are secured by a continuing senior secured interest on the Pine Point Project.
Related Party Transaction and Early Warning Report
The sale of the NSR and the previously announced acquisition of Units by Osisko Gold Royalties (see December 12, 2019
news release), (collectively the “Transaction”), constitutes a “related party transaction”, as such term is defined in Multilateral
Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (the “MI 61-101”). The Company is relying
on the exemption from the formal valuation requirement of MI 61-101 available under section 5.5(a) of the MI 61-101 and on
exemption from the minority shareholder approval requirements of the MI 61-101 available under section 5.7(a), on the basis of
the fair value of the Transaction not exceeding 25% of the market capitalization of the Company, calculated in accordance with
the provisions of the MI 61-101.
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 Canada’s two premier zinc mining camps. The Company’s flagship
properties are: 1) the Pine Point Mining Camp (“PPMC”), located in the Northwest Territories, has an Inferred Mineral
Resource of 52.4 Mt grading 4.64% zinc and 1.83% lead (6.47% ZnEq) , making it the largest pit-constrained zinc deposit in
Canada (please refer to the Technical Report filed on SEDAR December 23, 2019 for further information). The PPMC is located
on the south 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. In 2019-2020, the company will explore for additional mineral
resources and continue advancing the overall project. 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. Please refer to 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 filed on SEDAR. In 2019-2020, the Company will continue to diligently develop and explore
in order to confirm and grow both projects. The Company is also active in Quebec where it is testing multiple grass-roots base
metal targets.
The mineral resources mentioned in this press release conform to NI 43-101 standards and were prepared by independent
qualified persons, as defined by NI 43-101 guidelines. 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 respective
technical reports for details).
Mr. Robin Adair, P.Geo and Vice President Exploration of Osisko Metals, is the Qualified Person who has approved of the
scientific and technical information contained in this news release.
For further information on this press release, visit www.osiskometals.com or contact:
Killian Charles
VP Corporate Development
Osisko Metals Incorporated
(514) 861-4441
Email: [email protected]
www.osiskometals.com
Cautionary Statement on Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation
based on expectations, estimates and projections as at the date of this news release. Forward-looking information involves
risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to
differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results
to differ materially from such forward-looking information 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 at www.sedar.com. Although the Company believes that the assumptions and
factors used in preparing the forward-looking 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. No stock exchange, securities
commission or other regulatory authority has approved or disapproved the information contained herein.