Osisko Announces Purchase of Royalties from Barrick
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OSISKO ANNOUNCES PURCHASE OF ROYALTIES FROM BARRICK
Montreal, October 27, 2021 - Osisko Gold Royalties Ltd (“Osisko” or the “Corporation”) (OR: TSX &
NYSE) is pleased to announce that it has concluded a transaction with Barrick TZ Limited, a subsidiary
of Barrick Gold Corporation (“Barrick”), to acquire the following royalties for total cash consideration of
US$11,750,000:
• a 2% NSR royalty on the AfriOre and Gold Rim licenses comprising the West Kenya project
operated by Shanta Gold Limited (“Shanta Gold”);
• a 1% NSR royalty on the Frontier project operated by Metalor SA, a private company; and
• a 1% NSR royalty on the Central Houndé project operated by Thor Explorations Ltd. (“Thor”)
Sandeep Singh, President and CEO of Osisko commented, “We are pleased to add, to our portfolio,
royalties on prospective projects that are multiple-hundreds of square kilometers in size. West Kenya,
the most advanced asset, comprises a district-scale 1,162km2 land package which already contains a
robust initial high -grade resource with a potential long life, low cost, high return project. Recent drill
results, which rank amongst the best in the sector, highlight the high grade nature of the deposit and its
growth potential. The project is an important growth asset for Shanta Gold, a company with an operating
mine in the region and the ability to fast -track towards production. This latest suite of royalties
underscores Osisko’s ongoing discipline towards acquiring high quality royalties and streams with
attractive rates of return.”
About the Royalties
West Kenya is a development -stage, high-grade gold project located in the Lake Victoria gold field.
Shanta Gold published a scoping study in October 2020 that outlined a 9- year mine life producing
approximately 105,000 ounces of gold per year from an inferred resource base of 2.9 million tonnes
grading 12.6 g/t for 1.18 million ounces of gold. The project is currently envisaged as a combined open
pit and underground operation focused on the Isulu and Bushiangala deposits in the northwest corner
of the 1,162km 2 land package. Shanta Gold is currently infill drilling to advance the project to
prefeasibility and, subject to a positive investment decision, anticipates initial production in 2025. Recent
drilling results have yielded numerous high-grade intervals including 4.0 meters grading 706.3 g/t gold
and 6.0 meters grading 219.5 g/t gold. In addition to the existing resource, Shanta Gold has identified
multiple drill prospects within the broader district.
The Frontier royalty applies to two exploration permits in southeastern Burkina Faso covering an area
of approximately 400km 2 within the highly prospective Houndé gold belt , which has a +20Moz
endowment along the 200km trend. Metalor is conducting an 18,000-meter air-core drilling exploration
program on the property.
The Central Houndé royalty applies over an area of 474km 2 in the middle of the Houndé gold belt in
Burkina Faso and is located between Sarama Resources’ Santura project to the south and Endeavour
Mining’s Houndé mine to the north. To date Thor has identified three priority targets following
approximately 23,000 meters of drilling.
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Qualified Person
The scientific and technical content of this news release has been reviewed and approved by Guy
Desharnais, Ph.D., P.Geo., Vice President, Project Evaluation at Osisko Gold Royalties Ltd, who is a
“qualified person” as defined by National Instrument 43- 101 – Standards of Disclosure for Mineral
Projects (“NI 43-101”).
About Osisko Gold Royalties Ltd
Osisko is an intermediate precious metal royalty company focused on the Americas that commenced
activities in June 2014. Osisko holds a North American focused portfolio of over 160 royalties, streams
and precious metal offtakes. Osisko’s portfolio is anchored by its cornerstone asset, a 5% net smelter
return royalty on the Canadian Malartic mine, which is the largest gold mine in Canada.
Osisko’s head office is located at 1100 Avenue des Canadiens -de-Montréal, Suite 300, Montréal,
Québec, H3B 2S2.
For further information, please contact Osisko Gold Royalties Ltd:
Heather Taylor
Vice President, Investor Relations
Tel: (514) 940-0670 #105
Email: [email protected]
Forward-looking Statements
Certain statements contained in this press release may be deemed “forward ‐looking statements” within the meaning of applicable Canadian
and U.S. securities laws. These forward ‐looking statements, by their nature, require Osisko to make certain assumptions and necessarily
involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these
forward‐looking statements. Forward‐looking statements are not guarantees of performance. These forward‐looking statements, may involve,
but are not limited to, statements with respect to future events or future performance, the realization of the anticipated benefits deriving from
Osisko’s investments, the general performance of the assets of Osisko, and the results of exploration, development and production activities
as well as expansions projects relating to the properties in which Osisko holds a royalty, stream or other interest. Words such as “may”, “will”,
“would”, “could”, “expect”, “suggest”, “appear”, “believe”, “plan”, “anticipate”, “intend”, “target”, “estimate”, “continue”, or the negative or
comparable terminology, as well as terms usually used in the future and the conditional, are intended to identify forward ‐looking statements.
Information contained in forward‐looking statements is based upon certain material assumptions that were applied in drawing a conclusion or
making a forecast or projection, including, without limitation, management’s perceptions of historical trends; current conditions; expected future
developments; the ongoing operation of the properties in which Osisko holds a royalty, stream or other interest by the operat ors of such
properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the operators of such
underlying properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; no adverse
development in respect of any significant property in which Osisko holds a royalty, stream or other interest; the accuracy of publicly disclosed
expectations for the development of underlying properties that are not yet in production; and the absence of any other factors that could cause
actions, events or results to differ from those anticipated, estimated or intended. Osisko considers its assumptions to be reasonable based on
information currently available, but cautions the reader that their assumptions regarding future events, many of which are beyond the control
of Osisko, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect Osisko and its business. Such risks
and uncertainties include, among others, that the financial information presented in this press release is preliminary and could be subject to
adjustments, the successful continuation of operations underlying the Corporation’s assets, the performance of the assets of Osisko, the growth
and the benefits deriving from its portfolio of investments, risks related to the operators of the properties in which Osisko holds a royalty, stream
or other interest, including changes in the ownership and control of such operators; risks related to development, permitting, infrastructure,
operating or technical difficulties on any of the properties in which Osisko holds a royalty, stream or other interest, the influence of
macroeconomic developments as well as the impact of and the responses of relevant governments to the COVID -19 outbreak and the
effectiveness of such responses. In this press release, Osisko relies on information publicly disclosed by third parties pertaining to its assets
and, therefore, assumes no liability for such third party public disclosure.
For additional information with respect to these and other factors and assumptions underlying the forward‐looking statements made in this
press release, see the section entitled “Risk Factors” in the most recent Annual Information Form of Osisko which is filed wi th the Canadian
securities commissions and available electronically under Osisko’s issuer profile on SEDAR at www.sedar.com and with the U.S. Securities
and Exchange Commission and available electronically under Osisko’s issuer profile on EDGAR at www.sec.gov. The forward ‐ looking
statements set forth herein reflect Osisko’s expectations as at the date of this press release and are subject to change after such date. Osisko
disclaims any intention or obligation to update or revise any forward‐looking statements, whether as a result of new information, future events
or otherwise, other than as required by law.