Osisko Mining, Gold Field announce 50/50 joint venture of Windfall Gold Project

Osisko Mining (OBNNF) announces it has concluded a 50/50 joint venture agreement with a subsidiary of Gold Fields (GFI) for the joint ownership and development of Osisko’s Windfall gold project, located in the Abitibi greenstone belt, Urban Township, Eeyou Istchee James Bay, Quebec. Transaction Highlights: Gold Fields initial cash payment to Osisko of C$300M on signing. Gold Fields additional cash payment to Osisko of C$300 million on issuance of the applicable permits authorizing the construction, operation and mining of the Windfall Project. Gold Fields to sole fund expenditures for regional exploration up to a maximum of C$75 million, after which regional exploration programs would be proportionately funded by each of Osisko and Gold Fields. In addition to the initial cash payment and the Deferred cash payment, Gold Fields to make two additional separate C$17 million cash payments to Osisko. These represent reimbursement of items already incurred by Osisko as part of pre-construction spend. Gold Fields and Osisko share all pre-construction costs and construction costs on a 50/50 basis going forward. Governance arrangements with equal representation in the Partnership from Osisko and Gold Fields, to leverage each party’s skillsets. Osisko’s Chairman and Chief Executive Officer, John Burzynski, stated: "We are very pleased to partner with Gold Fields on the Windfall project and our exploration property portfolio. Today is the start of what we believe will prove to be a long and fruitful partnership with Gold Fields at Windfall, and in what we both believe is a significant emerging gold district in Quebec. This partnership further strengthens our strong balance sheet, allows us to significantly de-risk Windfall and brings us a very important step closer to realizing our objective of becoming a leading Canadian gold producer. With the proceeds from this Transaction, Osisko is fully-funded for our share of development capital to bring Windfall into production. Osisko shareholders retain considerable upside in the project while also benefiting from the mine building, operating and technical expertise of Gold Fields. Assuming the project is ultimately permitted and approved by the partners consistent with the Windfall Feasibility Study, Gold Fields’ acquisition cost, exploration commitment, and contribution to pre-construction and project capital would ultimately represent an investment of C$1.2 billion to acquire its interest, bring Windfall into production and further unlock the regional exploration upside. This Transaction is highly compelling on many fronts and represents the best path forward to maximize value for all stakeholders."