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.”

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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’.