Osisko Provides Update on CSA Stream Transaction
https://ceo.ca/@GlobeNewswire/…-stream-transaction-022a6
MONTREAL, June 06, 2023 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX & NYSE) is pleased to provide an update regarding the CSA stream transaction.
As previously announced, the Corporation’s wholly-owned subsidiary, Osisko Bermuda Limited (“OBL”), entered into a silver purchase agreement (the “Silver Stream”) and a backstop copper purchase agreement (the “Copper Stream” and together with the Silver Stream, the “Metals Streams”) with Metals Acquisition Corp. (“MAC”) (MTAL: NYSE) to partially fund the acquisition by MAC of the producing CSA mine in New South Wales, Australia (“CSA” or the “Mine”) from a subsidiary of Glencore plc (the “Acquisition Transaction”).
On June 5, 2023, MAC announced that it had obtained shareholder approval for the Acquisition Transaction. Closing of the Acquisition Transaction is expected on or about June 15, 2023 (the “Closing Date”).
Additionally, MAC has provided notice to OBL that it will utilize the full amount of the available deposit pursuant to the terms of the Copper Stream. As a result, OBL will make a cash payment of US$190 million to MAC on the Closing Date pursuant to the terms of the Metals Streams and associated equity subscriptions in MAC (collectively, the “Investments”). The upfront cash payment for the Investments can increase by US$15 million in the event the silver price averages at least US$25.50 per ounce over the ten business days immediately prior to the Closing Date. Closing of the Investments is subject to certain conditions precedent, including completion of the Acquisition Transaction. Further details on the Investments can be found in the Corporation’s press release dated December 28, 2022.
Sandeep Singh, President and Chief Executive Officer of Osisko commented: “CSA is a high-grade, long-life asset, with significant upside that can be unlocked by the MAC management team. We are pleased to see this important transaction nearing completion, and look forward to having both the silver and copper streams contribute to our near-term cash flows.”