- Roscan Gold (ROS) enters into royalty sale agreement with Osisko Gold Royalties for proceeds of up to $10 million
- This involves the company’s entire Kandiolé project in Mali, West Africa
- Osisko first acquired a 1 per cent net smelter return (NSR) royalty for $5 million
- As part of the agreement, Osisko has the option to purchase a second 1 per cent NSR
- Roscan Gold is a Canadian company focused on the exploration and acquisition of gold properties in West Africa
- Roscan Gold (ROS) is up by 9.76 per cent trading at $0.225
Roscan Gold (ROS) enters into royalty sale agreement with Osisko Gold Royalties for up to $10 million.
This involves the company’s entire Kandiolé project in Mali, West Africa.
Osisko first acquired a 1 per cent NSR royalty for upfront consideration of $5 million. According to the agreement, Osisko has the option to purchase a second 1 per cent NSR on the property at any time for another $5 million.
The company will have the right to compel Osisko to acquire the additional royalty in the event Roscan receives a long-term exploitation license from the Malian government.
Osisko has also been granted a right of first refusal on future royalties and streams related to the property. This includes the company’s outstanding buyback rights, if the company decides to sell those rights, as well as royalties on any future properties acquired or claimed by the company that are contiguous or complementary to the property.
Nana Sangmuah, President and CEO of Roscan, says:
“We are very happy to welcome Osisko Gold Royalties, a leading royalty and streaming provider, as a strategic partner while we continue to unlock significant value on the very prospective Kandiolé project, which is strategically located between two of the largest producing gold mines in Africa. This financial endorsement will help the company accelerate our objectives of further resource growth and advancing project development.”
Roscan has assembled a significant land position with permits in an area of producing gold mines. This includes B2 Gold’s Fekola Mine, which lies in a contiguous property to the west of Kandiolé and other major gold deposits.
Roscan Gold is focused on the exploration and acquisition of gold properties in West Africa.
Roscan Gold (ROS) is up by 9.76 per cent trading at $0.225 as of 11:38 am ET.