Osisko Gold Royalties announced today that it secured a silver stream from Falco Resources for Can$180 million.
The silver stream will come from Falco's Horne 5 property in Rouyn-Noranda, Qu?(C)bec.
Osisko will make staged upfront cash deposits to Falco of up to C$180 million and will make ongoing payments equal to 20% of the spot price of silver to a maximum of US$6 per ounce.
Horne 5, a development-stage project, is located in the former Horne mine that was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. Falco completed a feasibility study for the project in 2017 that demonstrated positive economics, and estimated annual payable gold production of 219,000 ounces at US$399 per gold ounce over a 15 year life of mine.
Falco is currently in the permitting process and working on obtaining all third-party approvals to advance project construction. Osisko is the largest shareholder of Falco and currently owns 12.7% of its issued and outstanding common shares of Falco.
"Today's announcement marks the beginning of a new chapter in the history of Osisko," commented Sean Roosen, Chair and CEO of Osisko in a news release.
"The Horne 5 Silver Stream takes our Accelerator model from concept to reality, and validates the effort our team has put forward in supporting the advancement of the Project through the development and the feasibility study. With this commitment, Osisko looks forward to supporting another great mine build in Quebec, one of the top mining jurisdictions in the world."
Creative commons image courtesy of ((brian))