Abitibi Metals boosts resource by 62% at B26 polymetallic deposit in Quebec
Indicated resources increased to 11.3 million tonnes from 6.9 Mt.
Roscan Gold (TSXV: ROS) has entered into a royalty financing agreement with Osisko Gold Royalties to raise gross proceeds of C$10 million. The royalty is related to the company’s Kandiolé project in Mali, West Africa.
Osisko will initially acquire a 1% net smelter return royalty for upfront consideration of C$5 million, and retains the option to purchase a second 1% NSR (for a total NSR royalty percentage of 2.0%) at any time for an additional C$5 million.
Roscan has the right to compel Osisko to acquire the additional 1% NSR royalty in the event it receives a long-term exploitation license on the Kandiolé property from the Malian government.
Osisko has also been granted a right of first refusal on future royalties and streams related to the property, including Roscan’s outstanding buyback rights, should it decide to sell those rights, as well as royalties on any future complementary properties acquired by the company.
The entire 401.8 Km2 Kandiolé project is situated 25 km east of B2Gold’s Fekola mine and has seven operating mines located within an 80 km radius. It currently hosts two high-grade gold discoveries from surface at Mankouke South and Central Mankouke along a 7 km trend line.
“We are very happy to welcome Osisko Gold Royalties, a leading royalty and streaming provider, as a strategic partner while we continue to unlock significant value on the very prospective Kandiolé project, which is strategically located between two of the largest producing gold mines in Africa,” Roscan CEO Nana Sangmuah said in a news release.
“This financial endorsement will help the company accelerate our objectives of further resource growth and advancing project development,” Sangmuah added.
Shares of Roscan Gold surged 11% on the TSX Venture Exchange by 12:25 p.m. ET. The Canadian gold junior has a market capitalization of C$81.4 million ($60.4m).
