Osisko Gold announces closing of CSA stream transactions

Osisko Bermuda Limited (OR) closed the previously announced silver purchase agreement and copper purchase agreement with Metals Acquisition Limited (MTAL) concurrently with the closing of the acquisition by MAC of the producing CSA mine in New South Wales, Australia from a subsidiary of Glencore (GLNCY). The closing date of the Metals Stream and Acquisition Transaction was June 15, 2023. TRANSACTION HIGHLIGHTS: Immediately Enhances Osisko’s Cash Flow: Starting with an effective date of February 1, 2023, OBL will purchase refined silver equal to 100% of payable silver for the life of the Mine. Between 2023-2025, MAC estimates annual payable silver production from the Mine to average ~428koz.; Beginning on the first anniversary of the Closing Date, OBL will purchase refined copper equal to between 3.0% and 4.875% of payable copper until 33,000 metric tonnes of refined copper have been delivered, and 2.25% thereafter for the remaining life of the Mine. Between 2023-2025, MAC estimates annual payable copper production from the Mine to average ~46,000 metric tonnes. Exposure to Premium Copper Asset in a Tier 1 Mining Jurisdiction: One of the highest-grade copper mines in Australia with a multi-decade operating history of consistent production. Track-record of reserve and resource replacement, with greater than 100% of mined reserves having been replaced since 2011. Recent investments of approximately US$130 million support potential mine life extensions beyond 15 years. Near-Term Opportunities to Extend Mine Life and Enhance Value: Significant exploration potential from both near-mine and regional targets along a highly prospective geological trend. Several areas identified to improve efficiencies, optimize operations and rationalize costs. Significant resource and mine life upside by potentially lowering the cut-off grade. Experienced Management Team with Track-Record of Creating Value for Stakeholders: Proven Australian mining professionals with extensive mining experience and a track-record of value creation for stakeholders. Partnership opportunities on future strategic activity, as well as a right of first refusal in favour of OBL on royalties or streams on any asset owned or acquired by MAC for a minimum of seven years following the Closing Date. METALS STREAMS DETAILS: Silver Stream: OBL has made an upfront cash deposit to MAC of US$75 million. OBL will purchase an amount of refined silver equal to 100% of the payable silver produced from CSA for the life of the Mine and will make ongoing payments for refined silver delivered equal to 4% of the spot silver price at the time of delivery. Between 2023-2025, MAC estimates payable silver production from the Mine to average ~428koz per annum. Copper Stream: OBL has made an upfront cash deposit to MAC of US$75 million. OBL will purchase refined copper equal to the following amounts of payable copper produced from CSA: from the Closing Date until the 1st anniversary of the Closing Date, nil; from the 1st anniversary of the Closing Date to the 5th anniversary of the Closing Date, 3.00%; from the 5th anniversary of the Closing Date until 33,000 metric tonnes of refined copper have been delivered to OBL, 4.875%; and thereafter, 2.25% for the remaining life of the Mine. Between 2023-2025, MAC estimates payable copper production from the Mine to average ~46,000 metric tonnes per annum. OBL will make ongoing payments for refined copper delivered equal to 4% of the spot copper price at the time of delivery. On the 5th anniversary of the Closing Date, MAC may elect to exercise one of two buy-down options with respect to the Copper Stream: reduce the Second Threshold Stream from 4.875% to 3.25% and the Tail Stream from 2.25% to 1.50% and reduce the threshold volume between the Second Threshold Stream and the Tail Stream from 33,000 metric tonnes to 23,900 metric tonnes by paying a one-time cash payment to OBL of US$40 million; or reduce the Second Threshold Stream from 4.875% to 4.0625% and the Tail Stream from 2.25% to 1.875% and reduce the threshold volume between the Second Threshold Stream and the Tail Stream from 33,000 metric tonnes to 28,450 metric tonnes by paying a one-time cash payment to OBL of US$20 million.