Osisko Metals (OM) has added a further C$8.5 million to its balance sheet, which will help further develop the Pine Point Project.
$6.5 million of the total amount came from the sale of a 0.5 per cent net smelter return royalty on the Pine Point project to Osisko Gold Royalties pursuant to an agreement dated December 10.
With the sale now complete, Osisko Gold Royalties holds a combined 2 per cent royalty on the project, which is not subject to any buy-back rights in favour of Osisko Metals.
The remaining $2 million came from a private placement, which was also announced on December 10, under which the company issued just over 4.13 million units at a price of $0.48 each.
These units are comprised of one common share in Osisko Metals and one-half of a common share purchase warrant. Each whole warrant will be exercisable at a price of $0.58 per share for a period of 24 months.
Robert Wares, Osisko Metals' Chairman and CEO, subscribed for a package of 1.25 million units for a total of $600,000, as did TSX-listed Osisko Mining - a major shareholder of the company.
According to yesterday's announcement, the proceeds will be used primarily for drilling work and hydrogeological studies at the Pine Point Project, located in the Northwest Territories, as well as for general corporate purposes.
Earlier in December, Osisko Metals published the results from 15 drill holes that were completed at the Pine Point Project. These holes focused on the Central Zone and tested gravity gradiometry anomalies, as well as areas of unconstrained mineralisation around the current resource block model.
Notably, drill hole OM100-20-001 intersected 8.6 metres at a grade of 11.45 per cent zinc and 3.57 per cent lead.
"The Pine Point project is advancing very well on all fronts in what we believe is the start of a sustained rising zinc commodity market," Robert said at the time.
"We look forward to another season of successful exploration at Pine Point in the new year," he added.
Osisko Metals is currently steady at 43 cents per share as of 9:44am EST.