Osisko Gold Royalties Announces Flow Through Private Placement Into NioGold Mining

MONTREAL, QUEBEC--(Marketwired - July 25, 2014) - Osisko Gold Royalties (the "Company" or "Osisko") (TSX:OR) is pleased to announce that it has signed a letter of intent with NioGold Mining Corporation ("NioGold") pursuant to which Osisko will acquire 14 million flow-through common shares of NioGold at a price of $0.35 per share by way of private placement. In addition, Osisko will purchase from NioGold the right to repurchase certain royalties on its claims for an aggregate purchase price $150,000. Details of the transaction are as follows:

Private placement

Osisko will acquire 14 million flow-through common shares of NioGold for total proceeds of $4.9 million to NioGold, which will be listed for trading on the TSX Venture Exchange under the symbol "NOX" on closing.

Osisko will acquire these 14 million flow-through common shares of NioGold for investment purposes and other than these shares, Osisko has no current intention to increase the beneficial ownership of, or control or direction over, additional securities of NioGold. These shares are being acquired by Osisko pursuant to applicable exemptions from the prospectus requirements and will be subject to a four-month hold period.

Purchase of Right to Repurchase Marban and Malartic Hygrade-NSM Royalties

Osisko to pay $150,000 to purchase the rights held by NioGold to repurchase half of the existing net smelter return royalties on the Marban block and Malartic Hygrade-NSM block, consisting of:

1. The right to repurchase for the price of $1,000,000:
   
   
   1. 0.25% NSR on the Marban claims
      
      
   2. 0.5% NSR on the First Canadian claims
      
      
   3. 1.0% NSR on the Norlartic claims
      
      
2. The right to repurchase for the price of $1,000,000:
   
   
   1. 1.0% NSR on the Malartic Hygrade-NSM claims
      
      

Upon closing of the transaction, Osisko will own 23,598,500 common shares of NioGold, or approximately 19.5% of NioGold's issued and outstanding common shares. The definitive agreement for the transaction will also include the following key terms:

1. NioGold to relocate its head office to Montréal, Québec
   
   
2. NioGold board to be reconstituted to include two Osisko nominees, two NioGold nominees and one nominee to be jointly determined by Osisko and NioGold, for a total of five directors.