Roscan signs royalty agreement with Osisko for Mali gold project

Map: Roscan Gold

Roscan Gold has entered into a royalty financing agreement with Osisko Gold Royalties Ltd  involving a royalty financing related to the Company’s entire 401.8 Km2 Kandiolé Project in Mali, West Africa.

Osisko has initially acquired a 1.0% net smelter return royalty for upfront consideration of $5.0 million.  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.  Furthermore, the Company 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 (the “ROFR”) 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.

Nana Sangmuah, President and Chief Executive Officer of Roscan, 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.”

Situated 25km east of B2Gold’s Fekola mine and seven operating mines located within an 80km radius, the Kandiolé project hosts two high-grade gold discoveries from the surface at Mankouke South and Central Mankouke.