Mr. Vincent Metcalfe reports
OSISKO RECEIVES NOTICE OF ELECTION OF BRUCEJACK STREAM REPURCHASE FROM PRETIUM
Osisko Gold Royalties Ltd.'s Osisko Bermuda Ltd. has received a notice from Pretium Exploration Inc., a subsidiary of Pretium Resources Inc., in regards to its election to exercise its option to fully repurchase Osisko Bermuda's interest in the Brucejack gold and silver stream, as provided for in the purchase and sale agreement between the parties dated Sept. 15, 2015.
Under the Stream Agreement, Pretium had an option to repurchase 100% of OBL's share of the Brucejack gold and silver stream by making a payment of US$118,500,000 (approximately C$154,000,000) to OBL on December 31, 2018. In order to exercise this option, Pretium had to provide 90 days' prior written notice to OBL, at which point the stream repurchase becomes a binding obligation on behalf of Pretium ("Stream Repurchase").
Osisko expects to use the proceeds from the Stream Repurchase for debt repayment and to fund additional investments.
The Stream Repurchase does not affect Osisko's 2018 gold equivalent ounce production guidance of 77,500 to 82,500 gold equivalent ounces. Osisko continues to retain exposure to the Brucejack mine through its 50% gold offtake interest.
About Osisko Gold Royalties Ltd.
Osisko Gold Royalties Ltd 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 130 royalties, streams and precious metal offtakes. Osisko's portfolio is anchored by five cornerstone assets, including a 5% NSR royalty on the Canadian Malartic Mine, which is the largest gold mine in Canada. Osisko also owns a portfolio of publicly held resource companies, including a 17.2% interest in Osisko Mining Inc., a 12.6% interest in Falco Resources Ltd. and a 34.7% interest in Barkerville Gold Mines Ltd.
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