Osisko Metals Announces Corporate Changes and Execution of Royalty Sale on Pine Point

MONTRÉAL, Jan. 28, 2020 (GLOBE NEWSWIRE) -- Osisko Metals Incorporated (the "Company" or "Osisko Metals") (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51) announces that the Board of Directors has appointed Mr. Robert Wares as Chief Executive Officer of the Company and Mr. Jeff Hussey as Chief Operating Officer. Mr. Wares will also maintain his role as Chairman and Mr. Hussey will continue to serve as President of the Company.

Mr. Robert Wares commented: “The fine-tuning of these senior roles will improve efficiencies, allowing Mr. Hussey to concentrate on operations at the Pine Point Project as we move towards more advanced exploration and development, while I focus on marketing, goal-setting and corporate strategies. I would like to take this opportunity to thank staff, Board members and shareholders for their support as we advance one of Canada’s premier zinc projects.”

The Company also announces that it has completed the sale of a 1.5% net smelter return royalty (the “NSR”) on the Company’s 100%-owned Pine Point Project to Osisko Gold Royalties Ltd (“Osisko Gold Royalties”), as previously announced in the Company’s December 3, 2019 news release disclosing the signing of a binding term sheet between Osisko Metals and Osisko Gold Royalties (the “Agreement”).

Pursuant to the terms of the Agreement, in connection with the sale of the NSR, the Company has received a cash consideration of $C6.5M and has granted to Osisko Gold Royalties a right of first offer on any future sales by the Company of any additional royalties, streams or similar interests on the Pine Point Project. The Company’s obligations in relation to the NSR are secured by a continuing senior secured interest on the Pine Point Project.

Related Party Transaction and Early Warning Report

The sale of the NSR and the previously announced acquisition of Units by Osisko Gold Royalties (see December 12, 2019 news release), (collectively the “Transaction”), constitutes a “related party transaction”, as such term is defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (the “MI 61-101”). The Company is relying on the exemption from the formal valuation requirement of MI 61-101 available under section 5.5(a) of the MI 61-101 and on exemption from the minority shareholder approval requirements of the MI 61-101 available under section 5.7(a), on the basis of the fair value of the Transaction not exceeding 25% of the market capitalization of the Company, calculated in accordance with the provisions of the MI 61-101.