MONTRÉAL, June 13, 2022 (GLOBE NEWSWIRE) — Osisko Metals Incorporated (the “Company” or “Osisko Metals“) (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51) is pleased to announce that it has filed a technical report in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects in connection with the initial inferred mineral resource estimate at Mount Copper as part of the Gaspé Copper project, located near Murdochville in the Gaspé peninsula of Québec.
The technical report entitled “NI 43-101 Technical Report on Gaspé Copper Project, Mineral Resource Estimate, Mount Copper Deposit, Québec, Canada” dated June 12, 2022 (with an effective date of April 12, 2022) has been prepared for Osisko Metals by SGS Canada Inc. The technical report is available on SEDAR (www.sedar.com) under Osisko Metals’ issuer profile.
The technical report has been filed on account of the Company’s option to purchase from Glencore Canada Corporation, a 100% interest in the Gaspé Copper property, as more particularly described in the management’s discussion and analysis of the Company for the three-month period ended March 31, 2022, a copy of which is available on SEDAR (www.sedar.com) under Osisko Metals’ issuer profile.
Update on Private Placement
The Company is also pleased to announce that its previously-announced “bough deal” private placement (the “Offering“) of flow-through units of the Company (“FT Units“) and flow-through shares of the Company (“FT Shares“) is expected to close on June 16, 2022, including the exercise of the underwriters’ option. Accordingly, pursuant to the Offering, an aggregate of 19,166,667 FT Units and 4,600,000 FT Shares are expected to be issued. Each FT Unit is comprised of (i) one common share of the Company that will qualify as “flow-through shares” (within the meaning of subsection 66 (15) of the Income Tax Act (Canada)), and (ii) one-half-of-one common share purchase warrant of the Company (each whole warrant, a “FT Warrant“). Each whole FT Warrant will entitle the holder thereof to purchase one common share of the Company at a price of $0.57 per share until the close of business on the date which is 60 months from the closing date of the Offering.
About Osisko Metals
Osisko Metals Incorporated is a Canadian exploration and development company focused on creating value in the base metal space. The Company owns one of Canada’s premier past-producing zinc mining camps, the Pine Point Project, located in the Northwest Territories for which the 2020 PEA (as defined herein) has indicated an after-tax NPV of $500 million and an IRR of 29.6%. The 2020 PEA is based on current Mineral Resource Estimates that are amenable to open pit and shallow underground mining and consists of 12.9Mt grading 6.29% ZnEq of Indicated Mineral Resources and 37.6Mt grading 6.80% ZnEq of Inferred Mineral Resources. Please refer to the technical report entitled “Preliminary Economic Assessment, Pine Point Project, Hay River, North West Territories, Canada” dated July 30, 2020 (with an effective date of June 11, 2020) (the “2020 PEA“), prepared by BBA Inc. and WSP Canada Inc., for Osisko Metals and Pine Point Mining Limited, a copy of which is available on SEDAR (www.sedar.com) under Osisko Metals’ issuer profile. Pine Point is located on the south shore of Great Slave Lake in the Northwest Territories, near infrastructure, paved highway access, and has an electrical substation as well as 100 kilometres of viable haulage roads already in place.
Cautionary Statements Regarding Mineral Resource Estimate
Readers are cautioned that mineral resources are not mineral reserves and that the economic viability of mineral resources that are not mineral reserves has not been demonstrated. The mineral resource estimate described in this news release may be materially affected by geology, environmental, permitting, legal, title, socio-political, marketing or other relevant issues. The mineral resource estimate is classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum’s “CIM Definition Standards on Mineral Resources and Mineral Reserves” incorporated by reference into National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Readers are cautioned not to assume that further work on the stated mineral resources will lead to mineral reserves that can be mined economically. The quantity and grade of the reported inferred mineral resources are conceptual in nature and are estimated based on limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological grade and/or quality of continuity. Zinc equivalency percentages noted above are calculated using metal prices, forecasted metal recoveries, concentrate grades, transport costs, smelter payable metals and charges.
For further information on this news release, visit www.osiskometals.com or contact:
Cautionary Statement on Forward-Looking Information
This news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections and interpretations as at the date of this news release. The information in this news release about the technical report; the option with Glencore Canada Corporation; the size and closing date of the Offering (if at all); and any other information herein that is not a historical fact may be “forward-looking information”. Any statement that involves discussions with respect to predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward- looking information. This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time such assumptions and estimates were made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Osisko Metals to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, but are not limited to, the ability to complete transactions on terms announced; the ability of the Company to satisfy the conditions precedent to complete the option with Glencore Canada Corporation; the geology of Gaspé Copper; the ability of exploration activities, including drilling, to accurately predict metallurgy; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; inflation; fluctuations 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 Company’s public documents filed on SEDAR (www.sedar.com) under Osisko Metals’ issuer profile. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Neither the 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 news release.