Development Osisko completes the acquisition of Tintic
Osisko Development, a TSX-V and NYSE listed company, has completed its previously announced acquisition of Tintic Consolidated Metal, which owns Trixie’s production test mine and mining claims in central Utah.
“With the acquisition of Tintic, we have inherited not only a very promising test mine in the Trixie project, but also an extensive set of historic lands in one of the world’s leading mining jurisdictions,” said said the President and CEO. Sean Roosen.
Osisko Development’s short-term plan is to undertake underground and surface drilling, while continuing to explore, develop and process mineralized material at the Trixie project.
The drilling is intended to support the preparation of a first NI 43-101 compliant resource statement over the next 12 months. At the same time, the company will carry out advanced technical studies on the project to generate additional surface and underground targets, perform metallurgical testing, geotechnical work and environmental studies to justify further development as well as increase production through expansion. low investment.
Under the terms of the transaction, Osisko Development will finance the acquisition through the issuance of 12,049,449 common shares in the capital of the company, aggregate cash payments of approximately $54 million, the issuance of a total of 2% net smelter royalties, with a 50% buyout right in favor of the company exercisable within five years, $12.5 million in deferred payments and the granting of certain other payments, rights and conditional bonds.
The company has also entered into a binding term sheet with Osisko Bermuda (OBL), a wholly owned subsidiary of Osisko Gold Royalties, for a stream on produced metals from Tintic for a total cash consideration of $20 million. .
As part of the stream, the company will deliver to OBL 2.5% of all metals produced from Tintic at a purchase price of 25% of the relevant spot metal price. Once 27,150 ounces of refined gold have been delivered, the throughput rate will decrease to 2% of all metals produced.
Closing of the stream is expected to occur no later than July 31, 2022 and is subject to customary closing conditions, including receipt of applicable regulatory and stock exchange approvals. Proceeds from the stream will be used to advance the development of Tintic.