Under the binding letter agreement, Osisko has agreed to pay Bonterra an initial upfront payment of
After completion of the Exploration Earn-In, Osisko and Bonterra have agreed to form a joint venture entity or contractual joint venture in such form as the parties may agree, each acting reasonably, taking into consideration any tax and other factors relevant to the parties.
During the Exploration Earn-In and upon and following the formation of the joint venture, Osisko will be the operator of the Properties. Upon completion of the Exploration Earn-In and the formation of the joint venture, Osisko and Bonterra will form a management committee to provide direction to the operator on exploration programs for the
Osisko and Bonterra have agreed to negotiate in good faith, settle, and enter into definitive documentation providing for the Exploration Earn-In as soon as practicable following the date hereof, subject to the satisfaction of certain customary conditions precedent.
Osisko may withdraw from the Exploration Earn-In at any time upon written notice to Bonterra. In the event of an election to withdraw from the Exploration Earn-In, Osisko will forfeit all rights and interests in the Properties with no further liability, and the definitive documentation shall be immediately terminated upon such election.
About the
Barry Deposit
The Barry deposit is a shear-hosted gold deposit with multiple parallel, sub-vertical, shear zones and a second set of veins dipping 25 to 60 degrees to the southeast. The gold mineralization consists of disseminated sulfides within the shear zones and the veins with local visible gold. The Barry deposit has been delineated over 1.4 kilometres along strike and 700 metres vertical and the deposit remains open for expansion.
Gladiator Deposit
Gold mineralization at the Gladiator deposit is hosted within sheared veins of quartz-carbonate composition, with sericite, chlorite, tourmaline with pyrite, chalcopyrite, sphalerite, galena and visible gold. The veins are divided into four groupings. The Gladiator deposit has been outlined by diamond drilling to a strike length of 1,600 metres and depth of 1,100 metres.
Duke Property
The Duke property consists of 81 strategic mineral claims totaling 3,590 hectares adjacent to the Gladiator Deposit. The Duke property mineralization is associated with multiple sub-parallel, moderately dipping to subvertical, shear hosted quartz-carbonate-chlorite veins and stockworks with minor pyrite and gold trending northeast to east west hosted within intermediate to mafic volcanics and tuffs with local felsic intrusions. Bonterra and Osisko have a 70% and 30% interest, respectively, in the Duke property.
Technical Report
The mineral resource estimates for the Barry and Gladiator deposits are supported by the technical report (the "Technical Report") entitled "Technical Report on the Gladiator and Moroy Deposits and the
Qualified Person
The scientific and technical content in this news release has been reviewed and approved by Mr.
About
Osisko is a mineral exploration company focused on the acquisition, exploration, and development of precious metal resource properties in
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, assumptions and projections as at the date of this news release. The information in this news release about the timing and ability of Osisko and Bonterra to complete the definitive documentation in respect of the Exploration Earn-In and satisfy the conditions precedent to executing the definitive documentation, if at all; the work expenditures expected to be incurred by Osisko over a three-year period, if at all; the formation of a joint venture on the
This forward-looking information is based on reasonable assumptions and estimates of management of Osisko, at the time it was made, involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Osisko 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 timing and ability of Osisko and Bonterra to complete the definitive documentation relating to the Exploration Earn-In, satisfy the conditions precedent to executing the definitive documentation, if at all, and close the Exploration Earn-In, if at all; risks relating to changes in tax laws; risks relating to property interests; the global economic climate; metal prices; dilution; ability of Osisko to complete further acquisitions; environmental risks; 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, Osisko cannot assure shareholders and prospective purchasers 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 Osisko nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. Osisko 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.
For further information, please contact:
Chief Executive Officer
Telephone: (416) 363-8653
Source:
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