Osisko Metals Signs Purchase Agreement to Acquire the Key Anacon Property IN the Bathurst Mining CAMP
OSISKO METALS SIGNS PURCHASE AGREEMENT TO ACQUIRE THE KEY ANACON PROPERTY
IN THE BATHURST MINING CAMP
(Montreal – December 27, 2017 ) Osisko Metals Incorporated (the “ Company” or “ Osisko Metals ”)
(TSX-V: OM; FRANKFURT: OB5) is pleased to announce that it has signed a Definitive Purchase
Agreement to acquire a 100% undivided interest in the Key Anacon claims and surrounding area (“Key
Anacon”) from Hunter Brook Holdings Limited (the “Vendor”).
Key Anacon is located within the Bathurst Mining Camp (“BMC”) and is roughly 19 km due south of the
town of Bathurst, New Brunswick and 16 km southeast of the former Brunswick #12 Mine. Key Anacon is
comprised of 45 claim units with a total surface area of 981 hectares and hosts approximately 12
kilometres of the Brunswick Horizon, which extends onto adjacent and surrounding claims held by Osisko
Metals.
Project Highlights
Key Anacon contains two (2) significant Bathurst-type volcanogenic massive sulphide deposits . Both the
Main and East Deposits are hosted within the Brunswick Horizon stratigraphy that is similar to the former
Brunswick No. 12 Mine host rocks . Key Anacon’s historical resources are no t NI 43-101 compliant , n o
known current mineral resource estimate has been conducted and t he drill data available pre -dates
current regulations and quality control standards.
The New Brunswick Ministry of Energy, Mines and Petroleum Mineral Occurrence Database reports that
the Main deposit contains historical resources that total 1.87 million tonnes grading 6.93% Zn, 2.63% Pb,
0.16% Cu, and 84g/t Ag in multiple, folded lenses (Source: 2003, Economic Geology, Monograph 11).
Key Anacon has been drilled from both surface and underground. Although n o production is known,
historical pre-production development includes a 460-metre shaft, a vent raise, eight development levels
and three sub -levels. Exploration potential is considerable below the deposit at 400 metres, and along
strike.
The Key Anacon East Deposit is located 1.5 km along strike to the northeast from the Main Deposit and it
has been intersected by several holes. The best intersection was reported in a press release dated
August 16, 1993 by Rio Algom on drill hole DDH 93 -42 that intersected 19.9 metres grading 7.86% Zn,
3.58 % Pb, 0.33% Cu and 78 g/t Ag within a mineralized interval grading 3.38% Zn, 1.35% Pb, 0.75% Cu
and 40.94 g/t Ag over 82.3 metres.
Key Anacon was last explored in 2001 . The potential on the property as well as on the adjacent Osisko
Metals claims is considered to be excellent based on the presence of these significant deposits hosted
within the considerable strike length of the favorable Brunswick Horizon , with alteration and folding
typically associated to BMC deposits.
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Figure 1: Key Anacon claims as well as other deposits in the BMC list unclassified historical resources that are not
NI43-101 compliant. The Company is not treating these historical estimates as current mineral resources and they
are shown for reference purposes only.
THE KEY ANACON TRANSACTION
Pursuant to Purchase Agreement between the Vendor and Osisko Metals, the Company will acquire a
100% undivided interest in the Key Anacon Claims and will have the exclusive rights to explore and
develop the Project in consideration of:
i. $1 million ($750,000 payable in cash and $250,000 payable in the equivalent of Osisko
Metals common shares valued at the 5-day VWAP preceding the day of the close of the
transaction);
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ii. Additional $500,000 (payable in the equivalent of Osisko Metals common shares valued
at the 20-day VWAP, 24 months following the signature of a definitive agreement);
iii. Additional $500,000 in cash on commencement of commercial production.
The Transaction is subject to the TSX Venture Exchange approval.
Jeff Hussey, President and CEO of Osisko Metals, commented: “ We are very happy to announce the
purchase of the historical Key Anacon deposits as they will contribute significant resources and could
become the cornerstone of Osisko Metals central concentrator multi -deposit concept in the Eastern
portion of the BMC. Drilling is being planned and will consist of approximately 12,000 metres to explore
the area in an attempt to increase the global h istorical resources and upgrade them to NI43 -101
standards.”
Qualified Person
Robin Adair is a Professional Geologist registered in New Brunswick and Vice President Exploration for
Osisko Metals, he is the Qualified Person responsible for the technical data reported in this news release.
About Osisko Metals
Osisko Metals is a Canadian exploration and development company creating value in the base metal
space with an emphasis on zinc. 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 could feed a central
concentrator. In parallel, Osisko Metals is monitoring several base metal oriented peers for projects and
acquisition opportunities. In Qu ébec, 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.
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. Forward -looking information involves risks, uncertai nties and other factors that could cause
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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 at all,
to obtain final approval of the Offering from the TSX Venture Exchange; an exemption being available
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 exploration plans. Factors that could cause actual result s 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 pr ojects; the other risks
involved in the mineral exploration and development industry; and those risks set out in the Corporation's
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assumptions and factors used in preparing the forward -looking inform ation 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. Th e 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.
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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.