- Osisko Development Corp. (ODV) has closed its acquisition of Tintic Consolidated Metals LLC
- Osisko has also signed into a binding term sheet with Osisko Bermuda Limited for a stream on the metals produced from Tintic for total cash consideration of US$20 million
- Consequently, the company has satisfied the escrow release conditions relating to the 13,732,900 subscription receipts of the company receipt
- Osisko Development Corp is a gold mining company focused on exploring and developing its mining assets
- Osisko Development Corp was up 1.099 per cent, trading at $9.20 at 10:15 AM ET
Osisko Development (ODV) has closed its acquisition of Tintic Consolidated Metals LLC.
Tintic Consolidated Metals LLC owns the producing Trixie test mine, as well as mineral claims covering more than 17,000 acres (including over 14,200 acres of which are patented) in Central Utah’s historic Tintic Mining District.
“With the acquisition of Tintic we have inherited not only a highly prospective test mine in the Trixie project, but also a large, historic land package in one of the world’s premier mining jurisdictions,” said Sean Roosen, Chair and Chief Executive Officer of Osisko Development.
“Through underground exploration, we hope to continue to expand the mineralization footprint along the T2 and T4 zones,” he added.
The terms of the transaction state that Osisko Development will fund the acquisition through the issuance of (i) 12,049,449 common shares in the capital of the company (ii) aggregate cash payments of approximately US$54 million, (iii) the issuance of an aggregate of 2 per cent NSR royalties, with a 50 per cent buyback right in favour of the company exercisable within five years, (iv) US$12.5 million in deferred payments, and (v) the granting of certain other contingent payments, rights and obligations.
Osisko Development’s near-term plan is to initiate underground and at-surface drilling while it continues exploration development and processing of the mineralized material at the Trixie project.
Drilling is targeting support for preparation of an initial resource statement in line with the National Instrument 43-101 over the next twelve months.
Osisko has also entered into a binding term sheet with Osisko Bermuda Limited, a wholly-owned subsidiary of Osisko Gold Royalties Ltd, for a stream on the metals produced from Tintic for total cash consideration of US$20 million.
The proceeds from the stream will be used for to advance the development of Tintic.
In addition, with the closing of the transaction, the company has satisfied the escrow release conditions relating to the 13,732,900 subscription receipts of the company issued at a price of C$4.45 per subscription receipt for gross proceeds of approximately C$61.1 million, which were issued on a bought deal private placement.
The net proceeds of the offering will be used to advance the development of the company’s mineral assets.
Osisko Development Corp is a gold mining company focused on exploring and developing its mining assets, including the Cariboo and Bonanza Ledge II gold projects in British Columbia and the San Antonio gold project in Mexico.
Osisko Development Corp was up 1.099 per cent, trading at $9.20 at 10:15 AM ET.