Osisko Update Regarding Lydian International
OSISKO UPDATE REGARDING LYDIAN INTERNATIONAL
Montreal, December 23, 2019 – Osisko Gold Royalties Ltd (“Osisko” or the “Company”) (TSX &
NYSE: OR) today has been informed by Lydian International Limited (“Lydian”) that Lydian and its direct
and indirect wholly owned subsidiaries, Lydian Canada Ventures Corporation and Lydian U.K.
Corporation Limited, have obtained an initial order (“Initial Order”) from the Ontario Superior Court of
Justice (Commercial List) for protection under the Companies’ Creditors Arrangement Act (Canada) (the
“CCAA”) as a result of the ongoing unlawful activities against Lydian’s Amulsar project in Armenia (the
“Project”).
Since June 2018, illegal blockades have prevented Lydian and its contractors from entering the Project
site. During this period, Lydian has petitioned local and national government officials to enforce the rule
of law and remove the blockades. Despite favourable court rulings and numerous public statements
from the Government of Armenia affirming that there is no legal basis on which to prevent Lydian from
completing and operating the Project, site access continues to be restricted.
The Initial Order provides for a broad stay of proceedings and the exercise and enforcement of rights
and remedies against Lydian by its creditors and others until January 2, 2020. While under CCAA
protection, Lydian intends to continue discussions with its lenders and others, including the Government
of Armenia, to seek to maximize the outcome for all stakeholders.
Osisko’s interest in the Project consists of a senior secured 4.22% gold and 62.5% silver stream, and
an unsecured 81.9% gold offtake. Osisko will continue to monitor the situation closely , and while an
impairment has not been determined at this time, a significant reduction in the carrying value of the
assets, totaling C$97 million as at September 30, 2019, may be required.
About Osisko Gold Royalties Ltd
Osisko Gold Royalties Ltd is an intermediate precious metal royalty company that holds a North
American focused portfolio of over 135 royalties, streams and precious metal offtakes. Osisko's portfolio
is anchored by its 5% NSR royalty on the Canadian Malar tic Mine, the largest gold mine in Canada.
Osisko also holds an equity portfolio of publicly traded resource companies, including a 15.9% interest
in Osisko Mining Inc., a n 18.0% interest in Osisko Metals Incorporated and a 19.9% interest in Falco
Resources Ltd.
Osisko is a corporation incorporated under the laws of the Province of Québec, with its 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:
Sean Roosen
Chair and Chief Executive Officer
Tel. (514) 940-0670
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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, the outcome of the proceedings initiated by Lydian pursuant to the Companies’ Creditors Arrangement Act on its business
as well as Osisko’s estimate of the impact of the proceedings initiated by Lydian on the carrying value of Osisko’s assets relating to the Amulsar
Project,. Words such as “may”, “will”, “would”, “could”, “expect”, “believe”, “plan”, “anticipate”, “intend”, “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 management’s perceptions of historical trends, current conditions and expected future developments,
as well as other considerations that are believed to be appropriate in the circumstances. Osisko considers its assumptions to be reasonable
based on information currently availab le, 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, risks relating to the ability of operators to carried out their operating activities.
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 and Management Discussion and Analysis
of Osisko which are filed with the Canadian securities commissions and available electr onically 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 information set forth herein refl ects Osisko’s expectations as at the date of this press release and is
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.