Roscan inks royalty financing agreement with Osisko to advance its gold project in Mali
(Kitco News) - On Friday, West Africa-focused explorer Roscan Gold (TSXV: ROS) (OTCQB: RCGCF) announced that it has entered into a royalty financing agreement with Osisko Gold Royalties involving a royalty financing related to the company's entire 401.8 Km2 Kandiolé project in Mali.
The company said that Osisko has initially acquired a 1.0% net smelter return (“NSR”) royalty for upfront consideration of $5.0 million, adding that pursuant to the agreement, Osisko will retain the option to purchase a second 1.0% NSR on the property at any time for an additional $5.0 million (“Additional Royalty”).
Furthermore, the company noted it will have the right to compel Osisko to acquire the Additional Royalty in the event Roscan receives a long-term exploitation license on the 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 in relation to the company's outstanding buyback rights, should the company decide to sell those rights, and royalties on any future properties acquired or claimed by the company that are contiguous or complementary to the property.
President and CEO Nana Sangmuah commented, "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. This financial endorsement will help the company accelerate our objectives of further resource growth and advancing project development."
Roscan Gold is a Canadian gold exploration company focused on the exploration and acquisition of gold properties in West Africa. The company indicated it has assembled a significant land position of 100%-owned permits in an area of producing gold mines (including B2 Gold's Fekola mine which lies in a contiguous property to the west of Kandiolé), and major gold deposits, located both north and south of its Kandiolé project in West Mali.