Osisko Development has closed the acquisition of US-based mining company Tintic Consolidated Metals, which holds the Trixie test mine in central Utah, US.

Tintic Consolidated Metals owns the producing test mine, as well as mineral claims that cover more than 17,000 acres in Tintic Mining District Central in Utah.

Under the deal, Osisko Development will fund the acquisition by issuing 12,049,449 common shares in the capital of the company, making $54m in aggregate cash payments, and issuing 2% net smelter return royalties.

The deal also includes deferred payments of $12.5m, as well as certain other contingent payments, rights and obligations.

Osisko Development chairperson and CEO Sean Roosen said: “With the acquisition of Tintic we have inherited not only a highly prospective test mine in the Trixie project but also a large, historic land package in one of the world’s premier mining jurisdictions.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Furthermore, Osisko Development signed a binding term sheet with Osisko Bermuda (OBL), a wholly owned subsidiary of Osisko Gold Royalties, for a stream on the metals produced from Tintic property for $20m in cash.

Osisko will deliver 2.5% of all metals produced from Tintic Consolidated Metals to OBL at a purchase price of 25% of the relevant spot metal price.

Upon delivering 27,150oz of refined gold, the stream rate will decrease to 2% of all metals produced.

OBL plans to use the proceeds to further the development of the Tintic.

The stream is planned to close on or before 31 July 2022. It is pending stock exchange and regulatory clearance.

Furthermore, the firm fulfilled the escrow release conditions linked to its 13,732,900 subscription receipts issued at C$4.45 apiece for gross proceeds of nearly C$61.1m.

These were issued on a ‘bought deal private placement’.