Roscan enters into royalty sale agreement with Osisko Gold Royalties

Osisko has initially acquired a 1.0% net smelter return (NSR) royalty for upfront consideration of US$5.0 million. Pursuant to the agreement, Osisko will retain the option to purchase a second 1.0% NSR (for a total NSR royalty percentage of 2.0%) on the property at any time for an additional US$5.0 million. Furthermore, the company will have the right to compel Osisko to acquire the additional royalty in the event Roscan receives a long-term exploitation license on the property from the Malian government.

Osisko has also been granted a right of first refusal on future royalties and streams related to the property including in relation to the company’s outstanding buyback rights, should the company decide to sell those rights, and royalties on any future properties acquired or claimed by the company that are contiguous or complementary to the property.

Nana Sangmuah, President and Chief Executive Officer of Roscan, commented:

“We are very happy to welcome Osisko Gold Royalties, a leading royalty and streaming provider, as a strategic partner while we continue to unlock significant value on the very prospective Kandiolé project which is strategically located between two of the largest producing gold mines in Africa. This financial endorsement will help the company accelerate our objectives of further resource growth and advancing project development.”

Read the article online at: https://www.globalminingreview.com/mining/05122022/roscan-enters-into-royalty-sale-agreement-with-osisko-gold-royalties/