Osisko Metals Incorporated completed its acquisition of a 100% interest in the Gaspé Copper Mine from Glencore Canada Corporation, a subsidiary of Glencore plc, under a purchase agreement dated July 8, 2022. This transaction, valued at US$25.0 million, involved issuing Glencore a senior secured convertible note convertible into Osisko Metals units at $0.40 per unit. If fully converted and exercised, Glencore could acquire approximately 21.8% of Osisko Metals' common shares.

Key aspects of the deal include:

1. Royalties: Glencore retains a 1% net smelter return royalty on the historical Mount Copper open pit and a 3% royalty on all other minerals from Gaspé Copper.

2. Future Payments: Osisko Metals agreed to pay Glencore US$20.0 million upon starting commercial production at Gaspé Copper.

3. Expenditure Commitment: Osisko Metals must spend $55.0 million on exploration, development, and environmental efforts over four years, with at least $20.0 million by March 25, 2024.

4. Offtake Agreement: A deal was made for Osisko Metals to buy all concentrates produced at Gaspé Copper from Glencore.

5. Investor Rights Agreement: This agreement grants Glencore certain rights, including designating a director to Osisko Metals' board, contingent on maintaining ownership thresholds.

Osisko Metals' acquisition of Gaspé Copper, a strategic move in the mining-friendly province of Québec, aims to enhance its position as a leading base metal development company in Canada.