Source: Osisko Mining.
  • Osisko Metals Incorporated (OM) has signed an investment agreement with a subsidiary of Appian Natural Resources Fund
  • Under the terms of the agreement, Osisko Metals and Appian have agreed to form a joint venture to advance the Pine Point Project
  • Appian will invest up to C$100 million over an estimated four-year period to acquire an undivided 60-per-cent interest in Pine Point Mining Limited
  • Osisko Metals Incorporated is a Canadian exploration and development company creating value in the critical metals space, specifically copper and zinc
  • Osisko Metals Incorporated (OM) opened trading at $0.318 per share

Osisko Metals Incorporated (OM) has signed an investment agreement with a subsidiary of Appian Natural Resources Fund.

Under the terms of the agreement, Osisko Metals and Appian have agreed to form a joint venture to advance the Pine Point Project.

Appian has agreed to invest up to C$100 million over an estimated four-year period to acquire an undivided 60-per-cent interest in Pine Point Mining Limited at a valuation of $91.3 million.

Point Mining is a wholly-owned subsidiary of Osisko Metals and the owner of the Pine Point Project.

The $100 million investment includes an estimated $75.3 million of funding ($19.8 million of which will be provided upon establishment of the joint venture) to advance the Pine Point Project to a final investment decision (FID). The other part of the investment is approximately $24.7 million in cash payments to Osisko Metals.

In addition, Appian has agreed to make a $5 million investment in the common shares of Osisko Metals on closing, priced at $0.2481 per share.

“We are delighted to welcome Appian as a long-term joint-venture partner for the advancement of the Pine Point Project,” said Robert Wares, Chairman & CEO.

“The transaction allows us to leverage Appian’s extensive mine development experience and includes a crucial investment of C$75 million into the Project that will advance the development of Pine Point to a “shovel-ready” status,” he added.

Osisko Metals and Appian have agreed to a budget to fund Pine Point to FID. Subsequent to the closing of the transaction and until Appian has acquired an ownership interest of 60 per cent in PPML, all funding in respect of the Pine Point Project will be made by way of cash calls issued by the board of PPML to Appian, the quantum and speed of which are determined at the sole discretion of the board of directors of PPML.

The board of directors of PPML will initially consist of four directors, with two nominees from Appian and two nominees from Osisko Metals. Appian will be entitled to appoint the Chair, and the Chair will have the casting vote.

Upon Appian earning an interest in PPML above 50 per cent, the board of directors will consist of five directors, with three nominees from Appian and two nominees from Osisko Metals.

Osisko Metals Incorporated is a Canadian exploration and development company creating value in the critical metals space, specifically copper and zinc.

Appian Capital Advisory LLP is a London-headquartered investment advisor to long-term value-focused private equity funds that invest solely in mining and mining-related companies.

Osisko Metals Incorporated (OM) opened trading at $0.318 per share.


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