/ NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR FOR DISSEMINATION IN THE UNITED STATES /
MONTRÉAL, June 24, 2019 /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 agents that includes
Haywood Securities Inc. (collectively, the "Agents"), in
connection with a "best efforts" private placement of an aggregate
of 10,697,000 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") for
aggregate gross proceeds of up to C$8,000,780 (the "Offering"). In
connection with the Offering: (i) up to 6,411,000 Flow-Through
Shares may be issued at an issue price of C$0.78 per Flow-Through Share (the "Tranche
One Price") for gross proceeds
of up to C$5,000,580; and (ii) up to
4,286,000 Flow-Through Shares may be issued at a price of
C$0.70 per Flow-Through Share (the
"Tranche Two Price") for gross proceeds of up to
$3,000,200.
In addition, the Agents have been granted an option to sell up
to that number of an additional Flow-Through Shares at the Tranche
One Price and/or the Tranche Two Price for additional gross
proceeds of up to C$2,000,000.
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, 2019.
The Offering is expected to close on or about July 16, 2019 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 Corporation controls Canada's two premier historical zinc mining
camps: the Pine Point Mining Camp and the Bathurst Mining Camp. The
Pine Point Mining Camp is located on the south shore of
Great Slave Lake in the Northwest
Territories, near established infrastructure, with paved
highway access and 100 kilometres of mine haulage roads and power
substation already in place. The Pine Point Mining Camp currently
hosts an inferred mineral resource (for purposes of National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects) of 38.4 Mt grading 4.58% zinc and 1.85% lead, making
it the largest near-surface, pit-constrained zinc deposit in
Canada (please refer to the
technical report titled "Mineral Resource Estimate for the Pine
Point Lead-Zinc Project, Hay River,
Northwest Territories, Canada" dated as of January 18, 2019, as amended and restated as of
January 25, 2019 (with an effective
date of December 20, 2018) prepared
by BBA Inc. for Osisko Metals, a copy of which is available on
SEDAR (www.sedar.com) under Osisko Metals' issuer profile). The
2018-2019 drill holes, once fully assayed, will be incorporated
into the database with the objective of issuing a new resource
estimate in the second half of 2019. The Pine Point Mining Camp is
located on the south shore of Great Slave Lake in the Northwest Territories, near infrastructure and
paved highway access and with 100 kilometres of haulage roads
already in place. The Bathurst Mining Camp is located in
northern New Brunswick, with an
indicated mineral resource (for purposes of National Instrument
43-101 – Standards of Disclosure for Mineral Projects) of
1.96 Mt grading 5.77% zinc, 2.38% lead, 0.22% copper and 68.9g/t
silver (9.00% ZnEq) and an inferred mineral resource (for purposes
of National Instrument 43-101 – Standards of Disclosure for
Mineral Projects) of 3.85 Mt grading 5.34% zinc, 1.49% lead,
0.32% copper and 47.7 g/t silver (7.96% ZnEq) in the Key Anacon and
Gilmour South deposits. In Québec,
Osisko Metals owns 42,000 hectares that cover 12 grass-root zinc
targets that will be selectively advanced through exploration in
2019.
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;
the results of the 2018-2019 drill holes; the timing and ability of
the Corporation to issue a new resource estimate in the second half
of 2019, if at all; the prospects of the Pine Point Mining
Camp and the Bathurst Mining Camp; 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.
