Canada’s Osisko Gold Royalties (TSX, NYSE: OR) has sold all the shares it held in explorations and development company Osisko Mining (TSX: OSK) for $132 million (about US$98 million).
The Montreal-based based firm, which has royalties in gold, silver and diamond mines, mainly in the form of net smelter returns (NSR) and streams, said it continued to hold 2% to 3% NSR royalty on the Windfall gold project and the surrounding property.
Windfall, located in the James Bay territory of Quebec, is owned by a 50:50 joint-venture partnership between Osisko Mining and Gold Fields (NYSE, JSE: GFI), created in May this year.
The sale not only reaffirmed Osisko Royalty’s commitment to aligning itself as a pure-play precious metals royalty and streaming company, but also strengthened its financial position, interim chief executive, Paul Martin, said in the statement.
“We remain extremely enthusiastic about our ongoing partnership with both Osisko Mining and Gold Fields at Windfall; a fully-funded, high-grade gold project,” Martin said.
According to the latest feasibility study, Windfall would have an initial mine life of 10 years, producing an average 294,000 oz. annually, which would potentially put it among Canada’s top 10 biggest gold mines.
THIS ARTICLE WAS ORIGINALLY POSTED ON MINING.COM
