Osisko Metals Incorporated (TSXV: OM | OTCQX: OMZNF | FRANKFURT: 0B51) has sold an additional 5% ownership interest in Pine Point Mining Limited to a subsidiary of Appian Natural Resources Fund III LP, a fund advised by Appian Capital Advisory LLP, a London-based private equity group specializing in the acquisition and development of mining assets, for an expected payment of approximately C$8.33M.
Approximately C$6.66M in cash was paid to Osisko Metals in connection with closing of the transaction, and the remaining amount, estimated to be approximately C$1.67M based on certain budget assumptions and estimates of management required to advance the Pine Point Project to a positive FID, to be paid as a milestone payment to Osisko Metals upon a positive FID (if at all).
The additional interest disposition is a non-arm’s length transaction within the policies of the TSX Venture Exchange as Appian is a non-arm’s length party of PPML, an affiliate of the company.
Robert Wares, CEO, and chairman, commented, “The sale of the additional 5% interest in Pine Point to Appian will allow the company to advance the Gaspé Copper project without resorting to an additional equity financing, which in the current market would be excessively dilutive. We thank Appian for their committed interest in the Pine Point Project and look forward to a continued productive joint venture.”
To find out more, please visit www.osiskometals.com
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