Osisko Announces Preliminary Q1 2021 Deliveries and Agreement to Acquire Spring Valley Royalties
MONTREAL, April 12, 2021 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX & NYSE) is pleased to provide an update on its first quarter sales and announces the acquisition of additional royalties on the Spring Valley gold project (“Spring Valley”) in Nevada as well as an additional royalty in Idaho for aggregate cash consideration of US$26 million.
PRELIMINARY Q1 2021 RESULTS
Osisko received approximately 19,960 attributable gold equivalent ounces1 (“GEOs”) in the first quarter of 2021. This figure excludes GEOs earned from the Renard diamond stream given the net proceeds from the diamond stream were reinvested through the bridge loan with the operator of the mine.
Osisko recorded preliminary revenues2 of C$66.9 million during the first quarter and preliminary cost of sales2 (excluding depletion) of C$20.4 million, resulting in a cash operating margin3 of approximately C$46.5 million. Excluding offtakes, Osisko’s cash operating margin for royalties and streams3 was approximately 94% during the first quarter of 2021. Osisko will provide full production and financial details with the release of its first quarter 2021 results after market close on Tuesday, May 11th, 2021.
Through a subsidiary, Osisko has entered into binding purchase agreements to acquire six royalties and one precious metal offtake, from two private sellers, for total cash consideration of US$26 million. The purchase agreements are subject to certain conditions precedent which are expected to be fulfilled in the coming weeks. The acquisitions will be funded through cash on hand. Four of the royalties are on claims overlying the multi-million ounce Spring Valley project, and increase our current net smelter return (“NSR”) royalty on Spring Valley from 0.5% to between 2.5% - 3.0% (sliding scale royalty percentages as long as gold prices are above US$700/oz). Immediately to the north of Spring Valley, lies the Moonlight exploration property (“Moonlight Project”), where Osisko has agreed to acquire a 1.0% NSR royalty. Osisko has also agreed to acquire a 0.5% NSR royalty and 30% gold and silver offtake right covering the Almaden Project in western Idaho