/ NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES /
MONTRÉAL, Oct. 15, 2018 /CNW/
- Osisko Metals Incorporated (the "Corporation" or
"Osisko Metals") (TSX-V:OM; FRANKFURT: OB5) is pleased to
announce that it has entered into an agreement with Canaccord
Genuity Corp. on behalf of a syndicate of underwriters that
includes Macquarie Capital Markets Canada Ltd (collectively, the
"Underwriters"), in connection with a "bought deal" private
placement of 8,667,100 common shares of the Corporation that will
qualify as "flow-through shares" (within the meaning of subsection
66 (15) of the Income Tax Act (Canada)) ("Flow-Through Shares") at a
price of $0.75 per Flow-Through Share
(the "Issue Price") for aggregate gross proceeds of
$6,500,325 (the
"Offering").
In addition, the Underwriters have been granted an option to
sell up to an additional 1,733,420 Flow-Through Shares at the Issue
Price for additional gross proceeds of up to $1,300,065.
The gross proceeds from the Offering will be used by the
Corporation to incur eligible "Canadian exploration expenses" that
will qualify as "flow-through mining expenditures" as such terms
are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures")
related to the Corporation's projects in Canada. All Qualifying Expenditures will be
renounced in favour of the subscribers of the Flow-Through Shares
effective December 31, 2018.
The Offering is expected to close on or about November 6, 2018 and is subject to certain
closing conditions including, but not limited to, the receipt of
all necessary approvals including the conditional listing approval
of the TSX Venture Exchange and the applicable securities
regulatory authorities. The Offering is being made by way of
private placement in Canada. The
securities issued under the Offering will be subject to a hold
period in Canada expiring four
months and one day from the closing date of the Offering. The
Offering is subject to final acceptance of the TSX Venture
Exchange.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent
registration or an applicable exemption from the registration
requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any
sale of the securities in any State in which such offer,
solicitation or sale would be unlawful.
About Osisko Metals
Osisko Metals is a Canadian exploration and development company
creating value in the base metal space with a focus on zinc mineral
assets. The Company controls Canada's two premier zinc mining camps in
Canada, namely the Pine Point Camp
("PPMC") located in the Northwest
Territories (22,000 ha) and the Bathurst Mining Camp
("BMC"), located in northern New
Brunswick (63,000 ha). The Company is currently drilling in
both mining camps for a combined 100,000 metre program. The focus
of these programs is to upgrade historical resources to comply with
NI43-101 regulations and also on exploration around historical
deposits. Brownfield exploration includes new innovative 3D
compilation techniques, updated geological interpretation, and
modern geophysics. In Québec, the Company owns 42,000 hectares that
cover 12 grass-root zinc targets that will be selectively advanced
through exploration. In parallel, Osisko Metals is monitoring
several base metal-oriented peers for opportunities.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward‐looking information"
within the meaning of the applicable Canadian securities
legislation that is based on expectations, estimates, projections
and interpretations as at the date of this news release. The
information in this news release about the Offering; the use of the
proceeds from the Offering; the jurisdictions in which the
Flow-Through Shares are offered or sold; the number of Flow-Through
Shares offered or sold; the gross proceeds from the Offering; the
timing and ability of the Corporation to close the Offering, if at
all; the timing and ability of the Corporation to satisfy the
listing conditions of the TSX Venture Exchange, if at all; the tax
treatment of the Flow-Through Shares; the timing of the renounce of
the Qualifying Expenditures in favor of the subscribers, if at all,
and any other information herein that is not a historical fact may
be "forward-looking information". Any statement that involves
discussions with respect to predictions, expectations,
interpretations, beliefs, plans, projections, objectives,
assumptions, future events or performance (often but not always
using phrases such as "expects", or "does not expect", "is
expected", "interpreted", "management's view", "anticipates" or
"does not anticipate", "plans", "budget", "scheduled", "forecasts",
"estimates", "believes" or "intends" or variations of such words
and phrases or stating that certain actions, events or results
"may" or "could", "would", "might" or "will" be taken to occur or
be achieved) are not statements of historical fact and may be
forward-looking information and are intended to identify
forward-looking information. This forward-looking information is
based on reasonable assumptions and estimates of management of the
Corporation, at the time such assumptions and estimates were made,
and involves known and unknown risks, uncertainties or other
factors which may cause the actual results, performance or
achievements of the Corporation to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking information. Such factors include, among
others, risks relating to the Offering; volatility in the trading
price of common shares of the Corporation; risks relating to the
ability of the Corporation to obtain required approvals, complete
definitive documentation and complete the Offering on the terms
announced; ability of Osisko Metals to complete further exploration
activities; property interests; the results of exploration
activities; risks relating to mining activities; the global
economic climate; metal prices; dilution; environmental risks
changes in the tax and regulatory regime; and community and
non-governmental actions. Although the forward-looking information
contained in this news release is based upon what management
believes, or believed at the time, to be reasonable assumptions,
the Corporation cannot guarantee shareholders and prospective
purchasers of securities of the Corporation that actual results
will be consistent with such forward-looking information, as there
may be other factors that cause results not to be as anticipated,
estimated or intended, and neither Corporation nor any other person
assumes responsibility for the accuracy and completeness of any
such forward looking information. Corporation does not undertake,
and assumes no obligation, to update or revise any such forward
looking statements or forward-looking information contained herein
to reflect new events or circumstances, except as may be required
by law.
SOURCE Osisko Metals Inc.
