ZINC-LEAD: Osisko initiates friendly takeover of Pine Point

MONTREAL and TORONTO – Osisko Metals has announced its intention to acquire all of the issued and outstanding common shares of Pine Point Mining in a friendly takeover. A newly formed company (Spinco) will be created to hold all of the assets and liabilities of Pine Point. [caption id="attachment_1003721326" align="alignright" width="335"] Historical drill core – and lots of it – at the Pine Point camp. (Image: Pine Point Mining)[/caption] Under the terms of the agreement, Pine Point shareholders are to receive 0.271 of an Osisko common share; 0.0677 of an Osisko common share purchase warrant; and 1 common share of Spinco. The warrants are exercisable at a price of $1.50 per Osisko share within 12 months of closing. The Spinco shares are to be consolidated on a 10:1 basis. Osisko Metals is quickly becoming the next up and coming base metal company. Not content with its considerable exploration success in New Brunswick’s Bathurst camp, the company will soon have a solid footing in the Northwest Territories’ Pine Point base metal camp. The Pine Point zinc-lead project is almost shovel ready. A positive preliminary economic assessment was filed in May 2017. Selected open pit deposits totaling 25.8 million indicated tonnes grading 2.9% zinc and 1.1% lead were included. The inferred portion is 3.7 million tonnes grading 2.9% zinc and 0.8% lead. As a former producer, the Pine Point camp also has historical resources that are not 43-101 compliant. The PEA put the after tax net present value of the project at $210.5 million and the internal rate of return at 34.5%. The pre-production capex requirement is $153.8 million, and the sustaining capital is $117.5 million. A payback period of 1.8 years is projected. Technical reports for Pine Point are posted at www.PinePointMining.com.