Osisko Gold Royalties Ltd. extended the maturity on two C$10 million loans with Falco Resources Ltd. until Feb. 28, 2019, as Falco seeks to clinch a C$180 million silver stream transaction with Osisko that is subject to a third-party right of first refusal.

Falco President and CEO Luc Lessard said the company needs breathing room on the loan maturities as it prepares to submit documents to Glencore Canada Corp., which has a 60-day right of first refusal on the silver stream.

The loan extensions cover a C$10 million senior note from 2016, which was previously extended, and a C$10 million secured senior loan it secured Sept. 11. Falco plans to repay the loans from proceeds of the silver stream transaction, assuming it closes.

Falco is working on the finishing touches to the documents it is sending to Glencore in the coming days, Lessard said, with the expectation that the 60-day countdown will be triggered before the end of December.

The proposed silver stream covers the Horne 5 gold-silver project in Quebec, which is part of a past-producing property.

In a 2017 feasibility study considering an underground operation, Falco estimated an after-tax net present value of US$602 million using a 5% discount rate. It has pegged proven and probable reserves at 80.9 million tonnes grading 1.44 g/t of gold, 14.14 g/t of silver, 0.17% copper and 0.77% zinc.