Osisko Metals Signs Purchase Agreements to Acquire Strategic Claims Adjacent to the Mount Fronsac North Deposit
OSISKO METALS SIGNS PURCHASE AGREEMENTS TO ACQUIRE
STRATEGIC CLAIMS ADJACENT TO THE MOUNT FRONSAC NORTH DEPOSIT
(Montreal – November 27, 2017) Osisko Metals Incorporated (the “ Company” or “Osisko Metals”)
(TSX-V: OM; FRANKFURT: OB5) is pleased to announce that it has signed a formal Purchase Agreement
to acquire, from four vendors (The “Vendors”), a 100% interest in 4 claim groups (the “Properties”) in the
Mount Fronsac North area in the Bathurst Mining Camp (“BMC”). The Properties are comprised of a total
of 39 claim units that have an approximate surface area of 850 hectares. Three of these claim groups host
the northern extension and downdip potential of the Mount Fronsac North Deposit that was acquired by
Osisko Metals in July 2017 (see NR dated July 6, 2017).
A previous drill hole ( MF00-26) intersected several intervals Cu-Pb-Zn mineralization within a wide
envelope of strongly altered and pyritized mineralization that is the north plunging extension of the Mount
Fronsac North deposit. Hole MF00-26 intersected 7.0 metres grading 1.93% Zn (384.0-391.0 metres) as
well as 7.0 metres grading 1.84% Cu (399.0-406.0 metres). The mineralized envelope is comprised of a
22.5-metre-wide zone (379.0-401.5 metres) of semi -massive to massive sulphides . Only limited wide
spaced drilling was conducted to follow up on these results and the current Mount Fronsac North drill
program will test this area again very soon.
The fourth claim group that was acquired is a separate block and it is located 5 km east of the Mount
Fronsac North D eposit. This claim block hosts s imilar mineralized favourable stratigraphy that has had
limited drilling. However, one hole in this area intersected 29.9 metres of 1.5% Zn and 0.5% Pb. Untested
gravity anomalies and significant lead soil anomalies exist up- ice from this drilling. O sisko Metal s also
staked adjacent claims in the area to create a coherent land package covering similar stratigraphy.
Jeff Hussey, President and CEO of Osisko Metals, commented: “We are happy to announce another
acquisition in the western half of the BMC. The Mount Fronsac North Deposit is a relatively large sulphide
deposit that hosts high grade mineralization locally. The larger volume of sulphide mineralization is
evidence of a significant volcanogenic system that we will evaluate and explore.”
THE MOUNT FRONSAC NORTH EXTENSION TRANSACTION
Pursuant to the Purchase Agreement between the Vendors and Osisko Metals, the Company will acquire
100% interest and will have the exclusive rights to explore and develop the Property by ;
• Making a one-time payment by issuing 150,000 common shares of Osisko Metals to the Vendors
on the closing of the Purchase Agreement; and
Additional Performance Payment as follows:
• Issue to the Seller an additional maximum amount of $999,999 payable in the equivalent value of
Osisko Metals common shares valued at the 30- day VWAP prior to the event that the Purchaser
achieves commercial production on the Properties with the Sellers being entitled to such
percentage of this Performance Payment as is obtained by dividing the amount of Mineral Reserves
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existing on the Property (as set out in a Positive Feasi bility Study) by the total Mineral Reserves
contained within the adjacent claim blocks in which the Purchaser has an interest ;
The Vendors will retain a 0.6% Net Smelter Royalty (NSR) from the proceeds of any commercial production
from the Properties.
The transaction is subject to TSX Venture approval.
About Mount Fronsac North
The Mount Fronsac North deposit contains a historical, non 43-101 compliant, unclassified resource of
1.26 million tonnes grading 7.65 % Zn, 2.18 % Pb, 0.14% Cu, 40.3 g/t Ag, and 0.40 g/t Au. This high
grade zone is hosted within 14 million tonnes of low-grade, semi-massive (>60%) to locally massive
sulfides that occur in an envelope of quartz-sericite ± chlorite schist.
The high grade deposit has a north-south strike length of 525 metres and a down dip length of 600 metres.
Thickness varies between 2 to 20 metres. The alteration and disseminated mineralization halo has a
maximum thickness of 140 metres and contains up to 50 percent fine to coarse-grained disseminated pyrite.
The pyritic envelope is 900 metres long and extends down dip over 1,000 met res. Massive sulfides are
found throughout this alteration envelope, but preferentially occur at or near the upper contact.
Qualified Person
Gary Woods is a Professional Geologist registered in New Brunswick and the Senior Exploration Manager
for Osisko Metals Incorporated, 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 c ould feed a central
concentrator. In parallel, Osisko Metals is monitoring several base metal oriented peers for projects and
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.
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.
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Forward-looking information involves risks, uncertainties and other factors that could cause actual events,
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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 t iming 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
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exploration results and exploration plans. Factors that could cause actual results to differ materially from
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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 Corporation's public documents filed
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policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news
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disapproved the information contained herein.