Osisko inks binding term sheet with Miyuukaa to transport hydropower to Windfall project

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(Kitco News) - Osisko Mining (OSK: TSX) announced Thursday that it has signed a binding term sheet with Miyuukaa Corp. with respect to the construction of proposed transmission facilities and the transport of hydroelectric power to the Windfall project, located in the Abitibi greenstone belt, Quebec.

The company said that Miyuukaa Corp., which is a wholly-owned corporation of the Cree First Nation of Waswanipi ("CFNW"), will finance, build, own and operate a 69 kV dedicated transmission line that will transport hydroelectricity to the Windfall project. 

"The power line from the Waswanipi substation to Windfall minimizes the environmental footprint and is located 100% on CFNW traditional lands covered by the James Bay Northern Quebec Agreement. As an end user, Osisko will pay service fees to Miyuukaa," it added.

Osisko said that the binding term sheet outlines the general and financial terms of the agreement between Osisko and Miyuukaa, which is for the purpose of ensuring delivery of hydroelectricity over the life of the planned Windfall mill as required.

Importantly, the company noted that terms will be further outlined in a definitive agreement to be entered into between Osisko and Miyuukaa, which is expected to be completed in the coming month.

"Using hydroelectric power through the final stages of exploration and throughout the planned construction and operations phases will reduce greenhouse gas emissions and the Windfall project's dependency on fossil fuels," Osisko said.

According to the company's statement, work is expected to commence in January on existing access roads, in preparation for brush clearing and construction of the transmission line, while awaiting permitting. The work is projected to take 12 months to complete, with the hook-up date anticipated in H1 2024.

Osisko is a mineral exploration company focused on the acquisition, exploration, and development of precious metal resource properties in Canada. Osisko holds a 100% interest in the high-grade Windfall gold deposit located between Val-d'Or and Chibougamau in Quebec. Osisko indicated that the Windfall gold deposit is currently one of the highest-grade resource-stage gold projects in Canada and has world-class scale.