Osisko Metals Inc. agreed to fully acquire Karst Investments LLC, which holds a 3% net smelter returns royalty on the mineral leases comprising the Pine Point zinc project in Canada's Northwest Territories.

The company will pay US$8.5 million cash and issue 2 million common shares in exchange for the royalty, it said Oct. 15.

A definitive agreement will be signed within 60 days with Karst and its owners.

Following the purchase, Pine Point will not be subject to any other royalties, back-in rights, payments or other agreements other than the territorial royalty, which is the tax payable to the state government.

Earlier in October, the company more than doubled its mineral claim holdings for the Pine Point project to 46,553 hectares.