Osisko Metals Announces Royalty Financing of $5 Million with Osisko GOLD Royalties
OSISKO METALS ANNOUNCES ROYALTY FINANCING OF $5 MILLION WITH
OSISKO GOLD ROYALTIES
(Montreal– October 12, 2017) Osisko Metals Incorporated (the “Company” or “Osisko Metals”) (TSX -
V:OM; FRANKFURT: OB5) is pleased to announce that it has entered into an agreement ( the
“Agreement”) with Osisko Gold Royalties Ltd (“Osisko Gold”) whereby Osisko Gold will acquire a 1%
net smelter return royalty on Osisko Metals’ current portfolio of projects within both the Bathurst Mining
Camp (“BMC”) and Quebec, for a cash consideration of C$5 million. The acquired royalty will also apply
to areas that Osisko Metals may acquire in the future that fall within a one kilometer distance from their
current property holdings. Osisko Gold will also acquire existing royalty buy -back agreements on current
projects and will hold rights of first refusal on any future royalty or metal stream sale from existing or
newly acquired properties by Osisko Metals.
The current Agreement is expected to close on or around October 18, 201 7, subject to regulatory
approvals. Osisko Gold Royalties Ltd is considered as an insider and t he Corporation intends to rely on
exemptions from the "formal valuation" and "minority approval" requirements of MI 61-101 in respect of
the “related party transaction”.
Jeff Hussey, Pr esident and CEO of Osisko Metals , stated: “This royalty financing with Os isko Gold
Royalties represents the final stage of 2017 financings , all successfully c ompleted since listing Osisko
Metals last June. The Company has now raised a total of C$41 .5 million to implement new acquisitions,
exploration and drilling programs, mostly within the BMC. Osisko Gold’s investment in our Company
underlines their confidence in our ability to upgrade and expand the slate of historical zinc-lead-copper
deposits in our BMC properties into NI43-101 compliant resources, and to further increase shareholder
value through strategic property acquisitions.”
About Osisko Metals
Osisko Metals is a Canadian exploration and development company creating value in the base metal
markets with an emphasis on the zinc space. In 2017, the Company acquired over 50,000 hectares in t he
Bathurst Mining Camp (“BMC”). The objective is to develop a multi-deposit asset base that would feed a
central concentrator. In parallel, Osisko Metals is mon itoring several base metal oriented peers for
projects hosting zinc, copper, and nickel for acquisition opportunities. In Québec, the Company acquired
42,000 hectares that cover 12 grass-root zinc targets that will be selectively advanced through exploration.
Osisko Gold Royalties Ltd (TSX/NYSE: OR) and Osisko Mining Inc. (TSX: OSK) are significant
shareholders of the Company, with Osisko Gold Royalties currently holding a 12.8% interest.
2
For further information on Osisko Metals, visit www.osiskometals.com or contact:
Jeff Hussey
President & CEO
Osisko Metals Incorporated
(514) 861-4441
Email: [email protected]
www.osiskometals.com
Christina Lalli
Director, Investor Relations
Osisko Metals Incorporated
(514) 861-4441
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 applicable Canadian securities legislation
based on expectations, estimates and projections as at the date of this news release. Forwa rd-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. Forward -looking information in this news
release includes, but is not limited to, the use of proceeds of the Offering; the timing and ability of the Corporation, if a t all, to
obtain final approval of the Offering from the TSX Venture Exchange; an exemption being avail able under MI 61-101 and Policy
5.9 of the TSX Venture Exchange from the minority shareholder approval and valuation requirements for each related party
transaction; objectives, goals or future plans; statements regarding exploration results and exploratio n plans. 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 resu lts; delays in obtaining or
failures to obtain required governmental, environmental or other project approvals; uncertainties relating to the availabilit y and
costs of financing needed in the future; changes in equity markets; inflation; fluctuations in co mmodity prices; delays in the
development of projects; the other risks involved in the mineral exploration and development industry; and those risks set ou t in
the Corporation's public documents filed on SEDAR at www.sedar.com. Although the Corporation 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 su ch 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 Corporation 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 Excha nge) 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.