A royalty financing deal has been signed between Roscan Gold and Osisko Gold for the Roscan’s Kandiolé project in Mali.
The two inked a deal to raise C$10m ($7.42m) in gross proceeds. It will also see Osisko retain the option to purchase a second 1% NSR for an additional C$5m at any time on the Kandiolé project.
Osisko has already purchased a 1% net smelter return royalty for C$5m ($3.7m) for upfront consideration. It will also retain the option to purchase a second 1% NSR for an additional C$5m at any time on the project. Roscan, however, will have the right to oblige Osisko to acquire the additional 1% NSR royalty in case the firm secures a long-term exploitation licence from the Malian Government on the 401.8km² Kandiolé property.
Kandiole Project
The Kandiole Project consists of exploration properties located in West Mali, hosting two high-grade gold discoveries from the surface at Mankouke South and Central Mankouke. Roscan continues to strategically expand its drilling program and test the current key targets in West Mali, the most productive greenstone gold belts on the continent.
In a press statement, Roscan said: “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.”
Roscan president and CEO Nana Sangmuah said: “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.”
