- Osisko Metals (TSXV:OM) has acquired a 100 per cent interest in the past-producing Gaspé Copper Mine in Québec
- The Montréal-based miner signed the purchase agreement with Glencore Canada Corp., a wholly owned subsidiary of Glencore plc (OTC:GLNCY)
- The company had completed 28,000 meters of drilling at the project with 6,000 metres to 10,000 metres in additional drilling expected to be completed during the 2023-2024 drill program
- Osisko Metals stock (TSXV:OM). opened trading at $0.23 per share
Osisko Metals (TSXV:OM) has acquired a 100 per cent interest in the past-producing Gaspé Copper Mine in Québec.
The Montréal-based miner signed the purchase agreement with Glencore Canada Corp., a wholly owned subsidiary of Glencore plc (OTC:GLNCY). Glencore was issued a US$25 million senior secured convertible note of Osisko which is convertible into units of the company at a price of $0.40 per unit, composed of one common share of the company and one-half common share purchase warrant.
Glencore retained a 1 per cent net smelter return royalty on the historical Mount Copper open pit and a 3 per cent net smelter return royalty on all other minerals extracted from Gaspé Copper.
Osisko will make a cash payment of US$20 million to Glencore upon the commencement of commercial production at Gaspé Copper. The company is also required to incur a total of US$55 million in exploration, development, and environmental expenditures, including permitting expenditures, over a period of four years, which began in March 2022.
Osisko Metals’ Chairman and CEO Robert Wares called the Gaspé Copper Project acquisition a milestone that provides significant copper exposure.
“Last year’s excellent drill results at Gaspé support our belief in the high-value potential of this asset and we are convinced that the acquisition of Gaspé Copper, together with our ongoing development of our joint-ventured Pine-Point project, positions Osisko Metals as a premier base metal development company in Canada,” Wares said in a news release. “I wish to thank both the Osisko Metals and Glencore teams, as well as all stakeholders, for their diligence and perseverance in completing this complex transaction that will no doubt benefit all parties and shareholders.”
Gaspé Copper is a 44-year former copper and molybdenum producer that was initially operated by Noranda Inc. and is 825 kilometres east of Montréal. The company has completed 28,000 meters of drilling at the project with 6,000 metres to 10,000 metres in additional drilling expected to be completed during the 2023-2024 drill program.
Osisko Metals is a Canadian exploration and development company creating value in the critical metals space, specifically copper and zinc.
Osisko Metals Inc. opened trading at $0.23 per share.
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