Gold Royalties Osisko Announces Royalty Transaction with Marimaca Copper

MONTREAL, Sept. 08, 2022 (GLOBE NEWSWIRE) — Osisko Gold Royalties Ltd. (“Osisko”) (OR: TSX & NYSE) is pleased to announce that it has acquired a 1.0% Net Smelter Return (“NSR”) royalty covering currently known mineralization and prospective exploration areas which constitute the Marimaca copper project located in Antofagasta, Chile (Figure 1).

STRONG POINTS

  • Osisko acquired a 1.0% NSR royalty from Marimaca Copper Corp. (MARI: TSX) and certain of its wholly-owned subsidiaries (“Marimacca”) for a total consideration of $15.5 million;
  • Newly created royalty on the Marimaca Copper Project covering approximately 1,310 hectares, including existing resources and potential near-resource targets;
  • As part of the transaction, Osisko was granted certain rights, including a right of first refusal with respect to any royalty, stream or similar interest related to the financing of the Marimaca project;
  • The Marimaca Project is in a well-established mining jurisdiction, located 35 kilometers from the operating Mantos Blancos copper mine, owned by Capstone Copper Corp., where Osisko has a silver stream;
  • Osisko believes that the Marimaca Project is one of the major undeveloped copper projects currently held by a single-asset developer;
    • A 2020 preliminary economic assessment highlighted an annual production of copper cathodes of 36,000 tonnes over a 12-year period;
    • 41,572m of drilling in 2022 is expected to expand mineral resources to support a definitive feasibility study expected to begin later this year;
    • In particular, Marimaca has set an exploration target of 30-50Mt of 0.4-0.5% Cu for the MAMIX zone which is located at depth and along the known deposit which should add to the increased mineral inventory in future studies;

  • Simple low-strip open-pit oxidized copper project with low capital intensity;
  • Proven mining jurisdiction with access to key infrastructure including electricity, water and ports;
  • Experienced management team and board.

MARIMACA COPPER PROJECT

The Marimaca Copper Project is an oxidized, open-pit, heap-leach copper project located in Antofagasta, Chile. The asset is 100% owned by Marimaca and hosts an NI 43-101 compliant resource of 70.4 Mt grading 0.60% CuT (total copper), 0.39% CuS (soluble copper) for 420 kt CuT (276 kt CuS) in measured and indicated resources. categories plus 43 Mt grading 0.52% CuT (0.31% CuS) for 225 kt CuT (132 kt CuS) in the inferred resource category. These resources are dated December 2019 and were most recently reported in a PEA published by Marimaca in August 2020 which is available on SEDAR. Description and supporting evidence of the various exploration targets, including MAMIX, can be found in the January 20, 2022 press release. Marimaca remains on track for a resource update on the project in late September or early October and the company expects to begin a definitive feasibility study on the project later this year.

Qualified person

The scientific and technical content of this press release has been reviewed and approved by Guy Desharnais, Ph.D., P.Geo., Vice-President, Project Evaluation at Osisko Gold Royalties Ltd., who is a “qualified person” as as defined by National Instrument 43-101 – Disclosure Standards for Mining Projects (“NI 43-101”).

About Osisko Gold Royalties Ltd.

Osisko is an Americas-focused precious metals royalty intermediary company that commenced operations in June 2014. Osisko holds a North American portfolio of over 165 precious metals royalties, streams and drawdowns. Osisko’s portfolio is anchored by its flagship asset, a 5% net smelter return royalty on the Canadian Malartic mine, which is the largest gold mine in Canada.

Osisko’s head office is located at 1100, avenue des Canadiens-de-Montréal, office 300, Montreal, Quebec, H3B 2S2.

Forward-looking statements

Certain statements contained in this press release may be consideredforward-looking statements” within the meaning of applicable Canadian and United States securities laws. These beforeforward-looking statements, by their nature, require Osisko to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements.research statements. Forwardlooking statements are not guarantees of performance. These beforeforward-looking statements, may include, but are not limited to, statements regarding future events or future performance, the realization of anticipated benefits from Osisko’s investments, including its investment in the Marimaca copper project, the performance general of Osisko’s assets and the results of exploration, development, exploration and production activities as well as expansion projects relating to properties in which Osisko holds a royalty, stream or other interest and more specifically that all conditions will be met to allow the operator to bring the Marimaca copper project into production on schedule. Words such as “may”, “will”, “would”, “could”, “expect”, “believe”, “plan”, “anticipate”, “intend”, “estimate” , “continue” or the negative or comparable terminology, as well as the terms usually used in the future and the conditional, are intended to identifyresearch statements. Information contained in the frontforward-looking statements are based on certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including, without limitation, management’s perceptions of historical trends; current conditions; expected future developments; the continued operation of the properties in which Osisko holds a royalty, stream or other interest by the operators of such properties in a manner consistent with past practices; the accuracy of public statements and disclosures made by the operators of such Underlying Properties; no material adverse change in the market price of the commodities underlying the portfolio of assets; no adverse developments with respect to any material property in which Osisko holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations regarding the development of underlying properties that are not yet in production; and the absence of any other factor that could cause actions, events or results to differ from those anticipated, estimated or intended. Osisko considers its assumptions to be reasonable based on information currently available, but cautions the reader that its assumptions regarding future events, many of which are beyond Osisko’s control, may ultimately prove to be incorrect as they are subject to risks. and uncertainties affecting Osisko and its business. These risks and uncertainties include, among others, the fact that the financial information presented in this press release is preliminary and could be subject to adjustments, the successful pursuit of mining activities in Quebec and more particularly of the operations underlying to the Company’s assets, the performance of Osisko’s assets, the growth and benefits from its investment portfolio, the risks associated with the operators of the properties in which Osisko holds a royalty, stream or other interest, including including changes in the ownership and control of such operators; risks related to development, permits, infrastructure, operating or technical difficulties on any of the properties in which Osisko holds a royalty, stream or other interest, the influence of macroeconomic developments as well as the impact and the responses of relevant governments to the COVID -19 outbreak and the effectiveness of those responses. In this press release, Osisko relies on information publicly disclosed by another other issuer regarding its assets and, therefore, assumes no responsibility for such public disclosure by a third party.

For more information on these and other factors and assumptions underlying the forecastforward-looking statements made in this press release, see the section entitled “Risk Factors” in Osisko’s most recent Annual Information Form which is filed with Canadian securities commissions and available electronically under Osisko’s issuer profile on SEDAR at www.sedar.com and with the United States Securities and Exchange Commission and available electronically under Osisko’s issuer profile on EDGAR at www.sec.gov. the front the forward-looking statements set forth herein reflect Osisko’s expectations as of the date of this press release and are subject to change after such date. Osisko disclaims any intention or obligation to update or revise anyforward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.

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