Mr. John Burzynski of Osisko Gold Royalties reports
OSISKO GOLD ROYALTIES ANNOUNCES FLOW THROUGH PRIVATE PLACEMENT INTO NIOGOLD MINING
Osisko Gold Royalties Ltd. has signed a letter of intent with Niogold Mining Corp., pursuant to which Osisko will acquire 14 million flow-through common shares of Niogold at a price of 35 cents per share by way of private placement. In addition, Osisko will purchase from Niogold the right to repurchase certain royalties on its claims for an aggregate purchase price of $150,000. Details of the transaction are as provided.
Private placement
Osisko will acquire 14 million flow-through common shares of Niogold for total proceeds of $4.9-million to Niogold, which will be listed for trading on the TSX Venture Exchange under the symbol "NOX" on closing.
Osisko will acquire these 14 million flow-through common shares of Niogold for investment purposes, and other than these shares, Osisko has no current intention to increase the beneficial ownership of, or control or direction over, additional securities of Niogold. These shares are being acquired by Osisko pursuant to applicable exemptions from the prospectus requirements, and will be subject to a four-month hold period.
Purchase of right to repurchase Marban and Malartic Hygrade-NSM royalties
Osisko to pay $150,000 to purchase the rights held by Niogold to repurchase half of the existing net smelter return royalties on the Marban block and Malartic Hygrade-NSM block, consisting of:
-
The right to repurchase for the price of $1-million:
- 0.25-per-cent net smelter royalty on the Marban claims;
- 0.5-per-cent net smelter royalty on the First Canadian claims;
- 1-per-cent net smelter royalty on the Norlartic claims.
- The right to repurchase for the price of $1-million:
- 1-per-cent net smelter royalty on the Malartic Hygrade-NSM claims.
Upon closing of the transaction, Osisko will own 23,598,500 common shares of Niogold, or approximately 19.5 per cent of Niogold's issued and outstanding common shares. The definitive agreement for the transaction will also include the following key terms:
- Niogold to relocate its head office to Montreal, Que.;
- Niogold board to be reconstituted to include two Osisko nominees, two
Niogold nominees and one nominee to be jointly determined by Osisko and
Niogold, for a total of five directors.
The transaction is subject to customary conditions, including the satisfactory completion of Osisko's due diligence on Niogold's assets, the negotiation and entering into by both parties of a definitive agreement, and regulatory approval from the TSX-V.
We seek Safe Harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.