Osisko Metals Signs Option Agreement with Osisko Mining on Urban-Barry Base Metal Exploration Claim Group
MONTREAL, QUEBEC–(Marketwired – March 29, 2018) - Osisko Metals Incorporated (the “Company” or “Osisko Metals“) (TSX VENTURE:OM)(FRANKFURT:0B5) is pleased to announce that it has signed an option agreement (the “Agreement”) with Osisko Mining Inc (TSX:OSK) to earn a 50% interest in the Urban-Barry Base Metals Project (the “Project”), a select package of 151 claims located within Osisko Mining’s Urban-Barry claim group. See situational map of joint-venture claims.
The Project covers 8,511 hectares (85.11 km2) and is located 225 kilometres ENE of the town of Val-d’Or and 100 km south of the town of Chibougamau, Québec, located on portions of the Urban-Barry Greenstone Belt in the eastern part of the Abitibi sub-province. The claims include twelve priority drill-ready airborne electromagnetic targets within two geological settings: 1) bi-modal volcanic sequences combined with Cu-Zn-Pb anomalies in tills. The targets have strong potential for volcanogenic massive sulphide (VMS) mineralization and 2) mafic-ultramafic intrusions combined with Cu-Ni anomalies in tills, representing potential for magmatic copper-nickel-cobalt mineralization.
Pursuant to the Agreement, the Company may earn a 50% interest in the Project by funding an aggregate of $5,000,000 in exploration expenditures over four (4) years as outlined below:
|(i)||$500,000, on or before the 1st year anniversary of the Effective Date (the “Initial Option Expenditure Payment”);|
|(ii)||$1,000,000, on or before the 2nd year anniversary of the Effective Date;|
|(iii)||$1,500,000, on or before the 3rd year anniversary of the Effective Date; and|
|(iv)||$2,000,000, on or before the 4th year anniversary of the Effective Date.|
Osisko Mining shall retain a 100% interest over any fortuitous precious metals (gold-silver) discoveries on the claims covered by the agreement. Osisko Mining will be project operator during the earn-in period.
Jeff Hussey, President and CEO of Osisko Metals, stated: “We are very happy to be signing this agreement with Osisko Mining. They have been very successful exploring the Windfall gold project and advancing exploration in the Urban Barry Camp. Their exploration and technical teams are second to none, one of the key reasons we are happy to have them as operators of this drill-ready project. We expect the program to begin during the second quarter of 2018 and to move forward quickly, as 2,000 metres of drilling have already been designed to rapidly test initial exploration targets”.
Mr. Mathieu Savard is the Qualified Person responsible for the technical data reported in this news release. He is a Professional Geologist registered in Quebec and is Vice President Exploration Québec of Osisko Mining Incorporated.
About Osisko Metals
Osisko Metals is a Canadian exploration and development company creating value in the base metal space with an emphasis on zinc mineral assets. The Company controls Canada’s two premier zinc mining camps, namely the development-stage Pine Point Camp (“PPC”) located in the Northwest Territories and the advanced-exploration Bathurst Mining Camp (“BMC”), located in northern New Brunswick. The Company is currently drilling in both camps a combined 100,000 metres that will focus on upgrading and expanding historical deposits, bringing high-priority targets into NI 43-101 compliance and conducting disciplined brownfields exploration. In Québec, the Company owns 42,000 hectares that cover 12 grass-root zinc targets that will be selectively advanced through exploration. In parallel, Osisko Metals is monitoring several base metal-oriented peers for opportunities. Osisko Gold Royalties Ltd. (TSX:OR)(NYSE:OR) and Osisko Mining Inc. (TSX:OSK) are significant shareholders of the Company.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as at the date of this news release. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the use of proceeds of the Offering; the timing and ability of the Corporation, if at all, to obtain final approval of the Offering from the TSX Venture Exchange; an exemption being available under MI 61-101 and Policy 5.9 of the TSX Venture Exchange from the minority shareholder approval and valuation requirements for each related party transaction; objectives, goals or future plans; statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates; the preliminary nature of metallurgical test results; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; uncertainties relating to the availability and costs of financing needed in the future; changes in equity markets; inflation; fluctuations in commodity prices; delays in the development of projects; the other risks involved in the mineral exploration and development industry; and those risks set out in the Corporation’s public documents filed on SEDAR at www.sedar.com. Although the Corporation believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Corporation disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
President & CEO
Osisko Metals Incorporated
Director, Investor Relations