MONTREAL, Sept. 08, 2022 (GLOBE NEWSWIRE) — Osisko Gold Royalties Ltd. (“ Osisko “) (TSX and NYSE: OR) is pleased to announce that it has earned a 1.0% net smelter return royalty (” NSR ”) covering the currently identified mineralization and potential exploration zones comprising the Marimaca copper project located in Antofagasta, Chile (Figure 1).
HIGHLIGHTS
- Osisko acquired a 1% NSR royalty from Marimaca Copper Corp. (MARI: TSX) and certain of its wholly owned subsidiaries (“ Marimacca ”) for a total consideration of US$15.5 million;
- Newly created royalty on the Marimaca copper project covering approximately 1,310 hectares, including existing mineral resources and nearby potential exploration targets;
- As part of the transaction, Osisko was granted certain rights including a right of first refusal in connection with any royalties, metal streams or similar rights related to the financing of the Marimaca Project;
- The Marimaca project is located within a well-established mining jurisdiction located 35 kilometers from the operating Mantos Blancos copper mine owned by Capstone Copper Corp., where Osisko holds a silver stream;
- Osisko believes the Marimaca Project is one of the best undeveloped copper projects currently held by single-asset developers;
- A preliminary economic study of 2020 defined an annual copper cathode production of 36 thousand tons over a period of 12 years;
- 41,572 m of drilling completed in 2022, which should increase the mineral resources to support a definitive feasibility study which should begin later this year;
- More specifically, Marimaca has defined an exploration target of 30-50 Mt at 0.4-0.5% Cu for the MAMIX zone which is located at depth and in continuity with the known deposit, which should increase the inventory of mineral resources for future studies;
- Simple, low stripping ratio open pit copper oxide project requiring low capital commitment;
- Leading mining jurisdiction with access to key power, water and port infrastructure;
- Experienced management team and board.
MARIMACA COPPER PROJECT
The Marimaca Copper Project is an open pit copper oxide project to be mined by heap leach, located in Antofagasta, Chile. The asset is 100% owned by Marimaca and includes an NI 43-101 compliant mineral resource of 70.4 Mt grading 0.60% CuT (total copper), 0.39% CuS (soluble copper) for 420 kt CuT (276 kt CuS) in the measured and indicated resource categories, in addition to 43 Mt grading 0.52% CuT (0.31% CuS) for 225 kt CuT (132 kt CuS) in the category of inferred resources. These mineral resources date from December 2019 and were more recently reported in the preliminary economic study published by Marimaca in August 2020, which is available on SEDAR. The description and supporting evidence of the various exploration targets, including MAMIX, can be found in the press release dated January 20, 2022. As expected, Marimaca is expected to release a mineral resource update in late September or early October and the company anticipates starting a definitive feasibility study later this year.
Figure 1: Delimitation of the area subject to the Osisko NSR royalty
https://www.globenewswire.com/NewsRoom/AttachmentNg/6921379b-61f1-42de-8547-9c89d22745bd
Qualified person
The scientific and technical content of this press release has been reviewed and approved by Guy Desharnais, Ph.D., geo., vice-president, project evaluation at Osisko Gold Royalties, and a “qualified person” under National Instrument 43-101 information regarding mining projects (“NI 43-101”).
About Osisko Gold Royalties Ltd.
Osisko Gold Royalties Ltd. is an intermediary precious metals royalty company with an Americas-focused portfolio of over 165 royalties, metal streams and precious metal production purchase agreements. Osisko’s portfolio is supported by its key 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, bureau 300, Montréal Québec H3B 2S2.
For further information, please contact Osisko Gold Royalties Ltd:
Heather Taylor
Vice President, Investor Relations
Such. (514) 940-0670 ext. 105
Email: [email protected]
Caution Regarding Forward-Looking Statements
Certain statements contained in this press release may be considered “forward-looking statements” within the meaning of applicable securities laws of Canada and the United States. By their nature, these forward-looking statements require Osisko to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from forecasted or expected results. Forward-looking statements do not contain any guarantee of performance. These forward-looking statements may include, but are not limited to, statements relating to future events or performance, the realization of anticipated benefits from Osisko’s investments, including its investment in the Marimaca copper project, the general performance of the of Osisko and the outcome of exploration, development and production activities as well as expansion projects relating to properties in which Osisko holds a royalty, stream or other interest, more particularly that all conditions will be satisfied in order to to allow the operator to bring the Marimaca copper project to the production phase on schedule. Words such as “may”, “would”, “will”, “would”, “could”, “expect”, “suggest”, “appear”, “believe”, “plan”, “anticipates”, “intends to”, “evaluates”, “targets”, “estimates”, “continues”, or their negative form or any other similar terminology, as well as the terms usually used in the future and in the conditional, identify forward-looking statements. Information contained in forward-looking statements is based on material assumptions upon which a conclusion or a forecast or projection was made, including, but not limited to, management’s perceptions of historical trends, current conditions and future developments, the continued operation of the properties in which Osisko holds a royalty, stream or other interest by the operators of such properties in a manner consistent with past practice, the accuracy of public statements and disclosures made by the operators of these properties, the absence of a material adverse change in the price of the products underlying the portfolio of assets, the absence of adverse development with respect to a material property in which Osisko holds a royalty , stream or other interest, the accuracy of publicly disclosed expectations regarding the development of the underlying properties which are not 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 that its assumptions are reasonable given the information available, but it warns the reader that its assumptions regarding future events, many of which are beyond its control, could prove to be inaccurate since they are subject to risks. and uncertainties affecting Osisko and its business. These 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 mining activities in Quebec and more particularly of the operations underlying the assets of the Company, the performance of Osisko’s assets, the growth and earnings from its portfolio of investments, the risks associated with 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 and responses of relevant governments to the COVID-19 pandemic and the effectiveness of those responses. In this press release, Osisko relies on information publicly disclosed by third parties, which information relates to potential new assets: the stream on the Tintic property and, accordingly, does not assume any responsibility in connection with such public disclosure by a third party.
For further details regarding these and other factors and assumptions underlying the forward-looking statements set forth in this news release, see the “Risk Factors” section of Osisko’s most recent Annual Information Form, filed with Canadian securities commissions and available electronically under Osisko’s issuer profile on SEDAR (www.sedar.com), and filed with the United States Securities and Exchange Commission and available electronically under Osisko’s issuer profile in EDGAR (www.sec.gov). The forward-looking information presented in this news release reflects Osisko’s expectations at the time of this news release and is subject to change after such date. Osisko disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of the receipt of new information, the occurrence of future events or otherwise, except as required by the law.
Figure 1: Delimitation of the area subject to the Osisko NSR royalty
