Mr. Vincent Metcalfe reports
EARLY WARNING NEWS RELEASE
Osisko Gold Royalties Ltd. has subscribed for and received from Falco Resources Ltd. 3,101,000 units at a price of $1.29 per unit. Each unit comprises one common share in the share capital of Falco and one-half of one common share purchase warrant of Falco. Each warrant entitles the holder to acquire one common share at a purchase price of $1.70 for a period of 18 months from the closing of the previously announced bought deal financing. The bought deal was announced on May 17, 2017.
Immediately prior to the closing of the bought deal, Osisko held, directly and indirectly, 20,826,005 common shares of Falco, representing approximately 13.2 per cent of Falco's issued and outstanding common shares. Immediately following the closing of the bought deal, Osisko owns, beneficial ownership of, or control and direction over: (i) 23,927,005 common shares of Falco, representing approximately 13.3 per cent of Falco's issued and outstanding common shares, and (ii) 1,550,500 warrants. Assuming the exercise of the warrants, Osisko would own 25,477,505 common shares of Falco, representing approximately 14.1 per cent of Falco's common shares that would be issued and outstanding.
Osisko acquired the shares described in this press release for investment purposes and in accordance with applicable securities laws. Osisko may, from time to time and at any time, acquire additional shares and/or other equity, debt or other securities or instruments of Falco in the open market or otherwise, and reserves the right to dispose of any or all of its securities in the open market or otherwise at any time and from time to time, and to engage in similar transactions with respect to the securities, the whole depending on market conditions, the business and prospects of Falco and other relevant factors.
A copy of the early warning report to be filed by Osisko in connection with the bought deal described above will be available on SEDAR under Falco's profile. This news release is issued under the early warning provisions of the Canadian securities legislation.
About Osisko Gold Royalties Ltd
Osisko is an intermediate precious metal royalty and stream company focused on the Americas that commenced activities in June, 2014. It holds over 50 royalties and streams, including a 5-per-cent net smelter return (NSR) royalty on the Canadian Malartic mine (Canada), a 2-per-cent to 3.5-per-cent NSR royalty on the Eleonore mine (Canada) and a silver stream on the Gibraltar mine (Canada). It maintains a strong financial position and has distributed $35.1-million in dividends to its shareholders during the past 10 consecutive quarters.
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