“The funds will be instrumental as Falco looks forward to building a high-quality, profitable and environmentally safe project that will deliver significant economic benefit to all of our stakeholders,” said Luc Lessard, president and CEO. “The partnership with Osisko and its cornerstone investment further demonstrates its commitment to supporting the next significant mine build in Québec, a leading mining jurisdiction.”

Osisko will provide Falco with staged payments totaling $180 million, payable as a first deposit of $25 million on closing of the transaction; a second deposit of $20 million upon the company receiving all necessary material third-party approvals, licenses, rights of way and surface rights; a third deposit of $35 million following receipt of all material permits required for the construction of a mine on the project, a positive construction decision for the project, and raising a minimum of $100 million in equity, joint venture or any other nondebt financing for the construction of the mine; a fourth deposit of $60 million upon the total projected capital expenditure for the project having been demonstrated to be financed; and an optional fifth deposit of $40 million at the sole election of Osisko to increase the stream percentage, payable concurrently with the fourth deposit.

Under the terms of the agreement, Osisko will purchase 90% of the payable silver from the project, increasing to 100% of the payable silver from the project in the event the optional fifth deposit is paid. In exchange for the silver delivered under the stream agreement, Osisko will pay Falco ongoing payments equal to 20% of the spot price of silver on the day of delivery, subject to a maximum payment of USD$6 per silver ounce. The silver produced from the Horne 5 Project and properties within a 5 km area of interest will be subject to the transaction.

Pursuant to the stream agreement, the company has agreed to pay a $2 million capital commitment fee. The fee is payable upon Osisko funding the third deposit under the stream agreement.

Closing of the silver stream transaction is expected to occur in September and is subject to the satisfaction of customary conditions, including obtaining regulatory approvals and approval from a majority of the minority shareholders of Falco.

Pursuant to an agreement between Falco and Glencore Canada Corp., the Silver Stream Transaction is subject to a right of first refusal in favor of Glencore. Following the execution of binding term sheets between Falco and Osisko, a formal notice was sent to Glencore. Glencore has 60 days to notify Falco that it wishes to purchase the stream agreement.

The closing of the debenture transaction was expected to occur at the end of June and is subject to receipt of all necessary regulatory approvals.