Osisko Announces Closing of CSA Stream Transactions. (Credit: omid roshan on Unsplash)
Osisko Gold Royalties Ltd (the “Corporation” or “Osisko”) (OR: TSX & NYSE) is pleased to report that the Corporation’s wholly-owned subsidiary, Osisko Bermuda Limited (“OBL”), closed the previously announced silver purchase agreement (the “Silver Stream”) and copper purchase agreement (the “Copper Stream”, and together with the Silver Stream, the “Metals Streams”) with Metals Acquisition Limited (“MAC”) (MTAL: NYSE) concurrently with the closing of the acquisition by MAC of the producing CSA mine in New South Wales, Australia (“CSA” or the “Mine”) from a subsidiary of Glencore plc (the “Acquisition Transaction”). The closing date of the Metals Stream and Acquisition Transaction was June 15, 2023 (the “Closing Date”).
CSA is a high-grade, long-life, underground copper-silver mine located approximately 12km west-northwest of the town of Cobar in New South Wales, Australia. The Mine is comprised of several mining and exploration leases in a proven poly-metallic base metals province. CSA was first discovered in the 1870’s, and large-scale production commenced in the mid 1960’s.
Since 2019, Glencore has invested approximately US$130 million in infrastructure improvements to reduce costs and position the mine for future growth. Major projects included ventilation upgrades, shaft refurbishment, mill replacements, processing circuit optimization and construction of an on-site paste backfill plant. These infrastructure projects will support potential mine life extensions beyond 15 years.
CSA is located along a highly prospective geological trend that is known to host major deposits in the Cobar region. In recent years, near-mine exploration has led to the discovery of the QTS Central orebody and the QTS South Upper orebody and highlights the potential for additional high value deposits close to existing infrastructure. Exploration success has led to mineral reserves increasing by approximately 83kt of contained copper since 2011, despite cumulative production of over 540kt of contained copper since that time. Drilling is ongoing on multiple mineralized lodes. On the broader CSA land package, there has been limited historical drilling completed. Recent exploration focus has been on the implementation of high-resolution geophysical surveys and structural modelling to create a sustainable exploration model in support of future drilling campaigns.
CSA is the largest employer in the Cobar region and enjoys strong relationships with local stakeholders. The Mine has a number of environmental programs in place to ensure best practices are followed and has committed to working towards reducing carbon emissions from operations through utilizing an electric mining fleet where possible and evaluating green energy alternatives.