Osisko Gold Royalties Ltd is pleased to announce that it has agreed to acquire a silver stream with reference to silver produced at the Gibraltar copper mine , located in British Columbia, Canada, from Gibraltar Mines Ltd.
(“Gibco”), a wholly-owned subsidiary of Taseko Mines Limited (“Taseko”). Osisko will pay Taseko a cash consideration of US$33 million for the silver stream. In addition, Osisko will make ongoing payments of US$2.75 per ounce of silver delivered.
Sean Roosen, Chair and CEO of Osisko noted: “Osisko is pleased to partner with Taseko on the Gibraltar mine to create our first silver stream. Our agreement with Taseko further strengthens and diversifies our Canadian portfolio with a long-life asset with a proven operator that will immediately be accretive to our portfolio of assets. This investment also provides Osisko shareholders with silver price optionality over multiple cycles, with potential exploration and expansion upside.”
Russell Hallbauer, President and CEO of Taseko, stated, “We are very happy with our agreement with Osisko on this transaction, partnering with a group that has become a world-class precious metal royalty and streaming company in such a short amount of time. We look forward to a long and prosperous relationship.”
About the Gibraltar Mine
The Gibraltar copper mine is located in Central British Columbia, Canada. Gibraltar is owned 75% by Taseko and 25% by a Japanese consortium (Sojitz Corporation, 12.5%; Dowa Corp, 6.25%; Furakawa Corp, 6.25%). Gibraltar has a mineral reserve of 3.2 billion pounds recoverable copper and 58 million pounds recoverable molybdenum. Gibraltar’s mill capacity is 85,000 tons per day (“tpd”). Processing at Gibraltar is conventional and consists of a typical crush, grind, and floatation circuit. Total production in 2016 was 133.2 million pounds of copper and 0.9 million pounds of molybdenum. Gibraltar produces a high quality 28%-copper concentrate (which contains a silver by-product), molybdenum concentrate and, at times, copper cathode. Copper concentrate is transported by truck to a rail loadout serviced by the CN Railway. From there, the railcars are shipped to the Port of Vancouver where the concentrate is loaded onto ocean freighters for shipment to final destination.
Taseko Mines Limited is a TSX and NYSE MKT-listed copper producer. The Company’s principal producing asset is the 75%-owned Gibraltar copper mine in Central British Columbia. The company also owns the New Prosperity project, Aley niobium project and Florence copper project in Arizona.
Osisko Gold Royalties is an intermediate precious metal royalty company focused on the Americas that commenced activities in June 2014. It holds over 50 royalties, including a 5% NSR royalty on the Canadian Malartic Mine (Canada) and a 2.0-3.5% NSR royalty on the Éléonore Mine (Canada). It maintains a strong financial position with cash resources of $499.2 million at December 31, 2016 and has distributed $30.8 million in dividends to its shareholders during the past nine consecutive quarters. The Company also owns a portfolio of publicly held resource companies, including a 13.5% interest in Osisko Mining Inc., 13.3% in Falco Resources Ltd, and 16.9% interest in Barkerville Gold Mines Ltd.
Osisko Gold Royalties
Vice President, Investor Relations
Osisko Gold Royalties
Joseph de la Plante
Vice President, Corporate Development