Osisko Gold Royalties Ltd (“
Osisko”) (OR: TSX
& NYSE) is pleased to congratulate Patriot Battery Metals Inc.
(“
Patriot”) on the maiden Mineral Resource
Estimate (“
MRE”) for the CV5 Spodumene Pegmatite
(“
CV5”) at its wholly owned Corvette Property
(“
Corvette” or “
the Property”),
located in the Eeyou Istchee James Bay region of Québec.
The MRE at CV5 has established it as the largest
lithium pegmatite mineral resource in the Americas, returning 109.2
million tonnes at 1.42% Lithium Oxide (“Li2O”) and 160 parts per
million (“ppm”) Tantalum Pentoxide (“Ta2O5“) of Inferred Resources,
at a cut-off grade of 0.40% Li2O, for a total of
3,835,000 tonnes contained lithium carbonate equivalent.
Additionally, and as reported by Patriot, the resource and
geological modelling has outlined significant potential for growth
at CV5, which remains open at both ends along strike, and to depth
along a significant portion of its length.
Osisko holds a sliding scale net smelter return
(“NSR”) royalty of 1.5-3.5% on precious metals, and 2.0% on all
other products, including Lithium, at Corvette. Osisko estimates
that a large majority (~80-95%) of the CV5 MRE falls on its 2.0%
Lithium NSR royalty area (Figure 1). The maiden MRE includes only
the CV5 Spodumene Pegmatite, and therefore does not include any of
the other known spodumene pegmatite clusters on the Property – CV4,
CV8, CV9, CV10, CV12, and CV13; some of which are covered Osisko’s
royalty.
Figure 1. Map from Patriot’s July 30, 2023 press
release with Osisko’s 2% NSR Lithium Royalty coverage overlayed in
a yellow outline.
In addition, Osisko would like to further
congratulate Patriot on its subsequently announced
C$109 million strategic equity investment (“Strategic
Investment”) by Albemarle Corporation
(“Albemarle”). Upon closing of the Strategic
Investment, Albemarle will own approximately 4.9% of Patriot’s
issued and outstanding common shares on a fully-diluted
in-the-money basis, or 6.4% on a non-diluted, issued and
outstanding basis. The proceeds from the Strategic Investment will
be used to accelerate the development activities at Corvette and
for general corporate purposes.
Paul Martin, Interim CEO of Osisko commented:
“The consistency at which the Patriot team has been able to achieve
remarkable drilling success going back to the discovery hole in the
Fall of 2021, and now punctuated by yesterday’s maiden CV5 MRE,
speaks to the unique quality of the Corvette property, as well as
Patriot’s vision and understanding of a highly prospective hard
rock Lithium camp. The subsequently announced strategic investment
be Albemarle only serves to further underpin the quality of this
asset on a global scale.”
Qualified Person
The scientific and technical content of this
news release has been reviewed and approved by Guy Desharnais,
Ph.D., P.Geo., Vice President, Project Evaluation at Osisko Gold
Royalties Ltd, who is a “qualified person” as defined by National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
(“NI 43-101”).
About Osisko Gold Royalties Ltd.
Osisko Gold Royalties Ltd is an intermediate
precious metal royalty company which holds a North American focused
portfolio of over 180 royalties, streams and precious metal
offtakes. Osisko’s portfolio is anchored by its cornerstone asset,
a 5% net smelter return royalty on the Canadian Malartic mine, one
of Canada’s largest gold mines.
Osisko’s head office is located at 1100 Avenue
des Canadiens-de-Montréal, Suite 300, Montréal, Québec,
H3B 2S2.
For further information, please contact
Osisko Gold Royalties Ltd:
Grant MoentingVice President,
Capital Markets Tel: (514) 940-0670 #116Email:
gmoenting@osiskogr.com |
Heather TaylorVice President,
Sustainability & Communications Tel: (514) 940-0670 #105Email:
htaylor@osiskogr.com |
|
|
CAUTIONARY
NOTE REGARDING
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press
release may be deemed "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and “forward-looking information” within the meaning of
applicable Canadian securities legislation. Forward-looking
statements are statements other than statements of historical fact,
that address, without limitation, future events, that the
development of the Corvette property by Patriot will be diligently
pursued, , production estimates of Osisko’s assets
(including increase of production), timely developments of mining
properties over which Osisko has royalties, streams, offtakes and
investments, management’s expectations regarding Osisko’s growth,
results of operations, estimated future revenues, production costs,
carrying value of assets, ability to continue to pay dividend,
requirements for additional capital, business prospects and
opportunities future demand for and fluctuation of prices of
commodities (including outlook on gold, silver, diamonds, other
commodities) currency, markets and general market conditions. In
addition, statements and estimates (including data in tables)
relating to mineral reserves and resources and gold equivalent
ounces are forward-looking statements, as they involve implied
assessment, based on certain estimates and assumptions, and no
assurance can be given that the estimates will be realized.
Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential", "scheduled" and similar
expressions or variations (including negative variations), or that
events or conditions "will", "would", "may", "could" or "should"
occur. Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors, most of which are beyond
the control of Osisko, and actual results may accordingly differ
materially from those in forward-looking statements. Such risk
factors include, without limitation, (i) with respect to properties
in which Osisko holds a royalty, stream or other interest; risks
related to: (a) the operators of the properties, (b) timely
development, permitting, construction, commencement of production,
ramp-up (including operating and technical challenges), (c)
differences in rate and timing of production from resource
estimates or production forecasts by operators, (d) differences in
conversion rate from resources to reserves and ability to replace
resources, (e) the unfavorable outcome of any challenges or
litigation relating title, permit or license, (f) hazards and
uncertainty associated with the business of exploring, development
and mining including, but not limited to unusual or unexpected
geological and metallurgical conditions, slope failures or
cave-ins, flooding and other natural disasters or civil unrest or
other uninsured risks, (ii) with respect to other external factors:
(a) fluctuations in the prices of the commodities that drive
royalties, streams, offtakes and investments held by Osisko, (b)
fluctuations in the value of the Canadian dollar relative to the
U.S. dollar, (c) regulatory changes by national and local
governments, including permitting and licensing regimes and
taxation policies, regulations and political or economic
developments in any of the countries where properties in which
Osisko holds a royalty, stream or other interest are located or
through which they are held, (d) continued availability of capital
and financing and general economic, market or business conditions,
and (e) responses of relevant governments to infectious diseases
outbreaks and the effectiveness of such response and the potential
impact of such outbreaks on Osisko’s business, operations and
financial condition; (iii) with respect to internal factors: (a)
business opportunities that may or not become available to, or are
pursued by Osisko, (b) the integration of acquired assets or (c)
the determination of Osisko’s PFIC status. The forward-looking
statements contained in this press release are based upon
assumptions management believes to be reasonable, including,
without limitation: that the Corvette property development schedule
will be maintained in a manner consistent with past practice; the
accuracy of public statements and disclosures made by Patriot; no
adverse development in respect of Corvette; and the absence of any
other factors that could cause actions, events or results to differ
from those anticipated, estimated or intended and the absence of
significant change in Osisko’s ongoing income and assets relating
to determination of its PFIC status; the absence of any other
factors that could cause actions, events or results to differ from
those anticipated, estimated or intended and, with respect to
properties in which Osisko holds a royalty, stream or other
interest, (i) the ongoing operation of the properties by the owners
or operators of such properties in a manner consistent with past
practice and with public disclosure (including forecast of
production), (ii) the accuracy of public statements and disclosures
made by the owners or operators of such underlying properties
(including expectations for the development of underlying
properties that are not yet in production), (iii) no adverse
development in respect of any significant property, (iv) that
statements and estimates relating to mineral reserves and resources
by owners and operators are accurate and (v) the implementation of
an adequate plan for integration of acquired assets.
For additional information on risks,
uncertainties and assumptions, please refer to the most recent
Annual Information Form of Osisko filed on SEDAR at www.sedar.com
and EDGAR at www.sec.gov which also provides additional general
assumptions in connection with these statements. Osisko cautions
that the foregoing list of risk and uncertainties is not
exhaustive. Investors and others should carefully consider the
above factors as well as the uncertainties they represent and the
risk they entail. Osisko believes that the assumptions reflected in
those forward-looking statements are reasonable, but no assurance
can be given that these expectations will prove to be accurate as
actual results and prospective events could materially differ from
those anticipated such the forward looking statements and such
forward-looking statements included in this press release are not
guarantee of future performance and should not be unduly relied
upon. In this press release, Osisko relies on information
publicly disclosed by Patriot pertaining to the Corvette property
and the development thereof and, therefore, assumes no liability
for such third party public disclosure. These statements
speak only as of the date of this press release. Osisko undertakes
no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, other than as required by applicable law.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/b0db2a60-5c7a-41fc-913a-39f00fe46012
Osisko Gold Royalties (TSX:OR)
Historical Stock Chart
From Apr 2024 to May 2024
Osisko Gold Royalties (TSX:OR)
Historical Stock Chart
From May 2023 to May 2024