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Osisko acquires royalties from Barrick Gold for $11.75 million

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(Kitco News) - Osisko Gold Royalties (OR: TSX & NYSE) announced Wednesday that it has concluded a transaction with Barrick TZ Limited, a subsidiary of Barrick Gold Corporation, to acquire royalties for total cash consideration of US$11,750,000.

According to the company's statement, royalties include a 2% NSR royalty on the AfriOre and Gold Rim licenses comprising the West Kenya project operated by Shanta Gold; a 1% NSR royalty on the Frontier project operated by Metalor SA, a private company; and a 1% NSR royalty on the Central Houndé project operated by Thor Explorations.

West Kenya is a development-stage, high-grade gold project located in the Lake Victoria gold field. Shanta Gold published a scoping study in October 2020 that outlined a 9-year mine life producing approximately 105,000 ounces of gold per year from an inferred resource base of 2.9 million tonnes grading 12.6 g/t for 1.18 million ounces of gold.

The Frontier royalty applies to two exploration permits in southeastern Burkina Faso covering an area of approximately 400km2 within the highly prospective Houndé gold belt, which has a +20Moz endowment along the 200km trend. Metalor is conducting an 18,000-meter air-core drilling exploration program on the property.

The Central Houndé royalty applies over an area of 474km2 in the middle of the Houndé gold belt in Burkina Faso and is located between Sarama Resources’ Santura project to the south and Endeavour Mining’s Houndé mine to the north. To date Thor has identified three priority targets following approximately 23,000 meters of drilling.

Osisko is an intermediate precious metal royalty company focused on the Americas that commenced activities in June 2014. Osisko holds a North American focused portfolio of over 160 royalties, streams and precious metal offtakes. Osisko’s portfolio is anchored by its cornerstone asset, a 5% net smelter return royalty on the Canadian Malartic mine, which is the largest gold mine in Canada.

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