- Osisko Metals Inc. (TSXV:OM) announces signing of option agreement to acquire Gaspé Copper Mine from Glencore Canada
- This will give Osisko Metals an option to acquire a 100 per cent interest in Gaspé Copper mine
- Osisko Metals will make an up-front payment of US$25 million by way of a convertible note
- Osisko will also make a cash payment of US$20 million when commercial production begins
- The company is a Canadian exploration and development company
- Osisko Metals Inc. (TSXV:OM) opened trading today at $0.375
Osisko Metals (OM) has signed a binding term sheet with Glencore Canada Corporation.
The agreement provides Osisko Metals with an option to acquire a 100 per cent interest in the past-producing Gaspé Copper mine.
Osisko Metals will make an up-front payment of US$25 million by issuing a convertible note to Glencore upon the successful closing of the transaction. In addition, the company will make a cash payment of US$20 million when commercial production begins.
Osisko Metals must also incur drilling costs of C$5 million before June 30, 2022, to test oxidation levels within the mineralization that surrounds the historical Mount Copper open pit deposit.
The option and acquisition by Osisko Metals of a 100 per cent interest in Gaspé Copper remain subject to the approval of the TSX Venture Exchange and the shareholders of Osisko Metals.
The acquisition by Osisko Metals of Gaspé Copper is expected to provide shareholder exposure to a significant copper development asset that is located in a safe jurisdiction with an excellent track record of mine permitting, especially for metals critical to global decarbonization objectives.
“Gaspé Copper was a significant copper producer in Eastern Canada for over forty years, and we believe in the potential to unlock value from this asset through drilling and re-evaluation of remaining resources,” said Robert Wares, Chairman & CEO of Osisko Metals.
“The successful closing of this transaction will give Osisko Metals shareholders significant copper exposure and make Glencore a major shareholder of the company,” he added.
The parties will work toward finalizing and signing a definitive agreement and all related documents before May 16, 2022.
Osisko Metals is a Canadian exploration and development company
Osisko Metals Inc. (OM) opened trading today at $0.375.
