Osisko acquires royalties from Barrick Gold for $11.75 million

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(Kitco News) - Osisko Gold Royalties (OR: TSX & NYSE) announced Wednesday that it has concluded a transaction with Barrick TZ Limited, a subsidiary of Barrick Gold Corporation, to acquire royalties for total cash consideration of US$11,750,000.

According to the company's statement, royalties include a 2% NSR royalty on the AfriOre and Gold Rim licenses comprising the West Kenya project operated by Shanta Gold; a 1% NSR royalty on the Frontier project operated by Metalor SA, a private company; and a 1% NSR royalty on the Central Hound?(C) project operated by Thor Explorations.

West Kenya is a development-stage, high-grade gold project located in the Lake Victoria gold field. Shanta Gold published a scoping study in October 2020 that outlined a 9-year mine life producing approximately 105,000 ounces of gold per year from an inferred resource base of 2.9 million tonnes grading 12.6 g/t for 1.18 million ounces of gold.

The Frontier royalty applies to two exploration permits in southeastern Burkina Faso covering an area of approximately 400km2 within the highly prospective Hound?(C) gold belt, which has a +20Moz endowment along the 200km trend. Metalor is conducting an 18,000-meter air-core drilling exploration program on the property.

The Central Hound?(C) royalty applies over an area of 474km2 in the middle of the Hound?(C) gold belt in Burkina Faso and is located between Sarama Resources' Santura project to the south and Endeavour Mining's Hound?(C) mine to the north. To date Thor has identified three priority targets following approximately 23,000 meters of drilling.

Osisko is an intermediate precious metal royalty company focused on the Americas that commenced activities in June 2014. Osisko holds a North American focused portfolio of over 160 royalties, streams and precious metal offtakes. Osisko's portfolio is anchored by its cornerstone asset, a 5% net smelter return royalty on the Canadian Malartic mine, which is the largest gold mine in Canada.

By Vladimir Basov

For Kitco News

Follow kitconewsnow vbasov@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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