Mr. Claude Dufresne reports
NIOBAY METALS ANNOUNCES PRIVATE PLACEMENT WITH OSISKO GOLD ROYALTIES
Osisko Gold Royalties Ltd. has agreed to purchase, by way of a private placement, nine million common shares of Niobay Metals Inc. at a price of 26 cents per share for proceeds of $2.34-million.
The financing is expected to close on or about March 28, 2018, following which Osisko will own approximately 19.7 per cent of Niobay's issued and outstanding shares on a non-diluted basis.
Pursuant to the subscription agreement entered into between Niobay and Osisko in connection with the financing, so long as Osisko holds not less than 10 per cent of the then issued and outstanding shares of Niobay, Osisko will have the right to nominate one director to Niobay's board of directors and participate in all future equity financings to maintain its relative equity ownership in Niobay.
Upon closing of the financing, Osisko will be granted an option to purchase a 1.0-per-cent royalty on all metals to be produced at the James Bay niobium project. The option will be exercisable by paying $2-million to Niobay at any time within 90 days following the delivery by Niobay to Osisko of a bankable feasibility study on the project.
Claude Dufresne, president and chief executive officer of Niobay, said: "We are pleased to welcome Osisko as strategic investor. We view this investment as a vote of confidence in our company, our team and our James Bay niobium asset, and we look forward to working together to develop our project and to build shareholder value."
The proceeds of the financing will be used primarily to finance the development costs of Niobay's niobium project and for general corporate purposes.
The financing is subject to the final acceptance of the TSX Venture Exchange and certain other customary conditions. The shares to be issued to Osisko will be subject to a hold period expiring four months and one day after the closing date.
About Niobay Metals Inc.
Niobay Metals is a mining exploration company holding a 100-per-cent interest in the James Bay niobium property in Ontario. In addition, Niobay holds an option to acquire an interest of up to 65 per cent in the La Peltrie gold project in Northern Quebec, a 49-per-cent direct participation in certain mineral titles located in the Chibougamau region of Quebec under a joint venture agreement with SOQUEM, and a 72.5-per-cent interest in the Crevier niobium and tantalum project located in Quebec.
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