Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
As part of recent deals with exploration company Osisko Mining (TSX:OSK), Montreal-based Osisko Gold Royalties Ltd (TSX:OR)(NYSE:OR) announced Thursday that two of its senior executives will be leaving their current posts and moving towards new opportunities, starting August 31, 2016.
John Burzynski, Senior Vice President New Business Development, and Robert Wares, Chief Geologist, “are expected to focus their efforts on Osisko Mining Inc.,” the company said in a press release. Burzynski will remain as a Director of Osisko Gold Royalties Ltd.
Both Burzynski and Wares have been part of the streaming company since its inception. They played a key role in the sale for $4.1 billion of Osisko Exploration Ltée, after a successful campaign with the discovery, definition, financing, building and commissioning of the Canadian Malartic gold mine.
Leaving John Burzynski, Senior Vice President New Business Development, and Robert Wares, Chief Geologist were both part of the successful discovery, definition, financing, building and commissioning of the Canadian Malartic gold mine.
Burzynski and Wares will now continue their work at Osisko Mining Inc., where Osisko Gold Royalties owns a 16% equity interest, as well as royalties on key properties.
Earlier this week, both companies made headlines when they announced entering into a letter of agreement in which Osisko Mining would earn 100% of its interest in its portfolio of exploration properties held in the James Bay and Labrador Trough areas of Québec. The James Bay portfolio is comprised of a group of 32 projects covering 447,000 hectares.
Under the terms of the agreement, the Québec-based exploration portfolio will be optioned to Osisko Mining in return for time-based exploration expenditures. This means that Osisko Mining may earn 50% interest of Osisko Royalties interest upon incurring expenditures totaling $19.2 million, and a 100% of its interest upon completing the total investment of $32 million over a seven-year period.
“Osisko Mining will benefit from the years of expertise brought to bear on these projects from the former Virginia Mines exploration team (acquired by Osisko Royalties in 2015), and will be able to continue significant exploration programs through the integration of this team into Osisko Mining as part of the transaction,” John Burzynski and Osisko Gold Royalties’ Vice President Corporate Development, Joseph de la Plante, said in a statement.
