Osisko Metals Inc. said Oct. 12 that it signed an agreement that will see Osisko Gold Royalties Ltd. acquiring a 1% net smelter royalty over Osisko Metals' projects within Quebec and the Bathurst Mining Camp in New Brunswick for C$5 million.
The royalty will also apply to areas that Osisko Metals may acquire in the future, falling with a one-kilometer distance from current properties that are covered by the royalty.
As part of the deal, Osisko Gold will purchase existing royalty buy-back agreements on current projects and will hold rights of first refusal on any future royalty or metal stream sale from Osisko Metals' existing or newly acquired properties.
According to Osisko Metals President and CEO Jeff Hussey, the royalty deal is the final stage of its 2017 financings, raising a total of C$41.5 million for new acquisitions, exploration and drilling programs.
The transaction is expected to close by Oct. 18.