Osisko Metals Incorporated (OTCMKTS:OMZNF) (CVE:OM) Concludes Royalty Financing: Stock Flat
Osisko Metals Incorporated (OTCMKTS:OMZNF) (CVE:OM) is moving in a range after the company and Osisko Gold Royalties Ltd signed a binding letter of agreement.
Market Stats
On Friday, OMZNF stock ended flat at $0.2927 with more than 2k shares, compared to its average volume of 4.1K shares. The stock moved within a range of $0.2927 – 0.2927 after opening trading at $0.2927.
Osisko Metals Announces Closing of $6.5 Million Royalty Financing on Pine Point Project
As per the agreement, Osisko Royalties will receive an additional 1% net smelter returns royalty on the Pine Point Project in return for around $6.5 million in cash. The transaction is subject to customary closing conditions that include TSX Venture Exchange’s approval. After effecting the NSR Amendment transaction, Osisko Royalties will now be owned around 3% net smelter returns royalty on the Pine Point Project that is not subject to repurchase rights from Osisko Metals.
The transaction is a “related party transaction” meant for the protection of minority equity holders in Special transactions (MI 61-101) as well as minority equity holders protection in special TSX Venture Exchange transactions since Osisko Royalties has been an associated party of the company since it holds beneficial ownership of over 10%. Therefore, in the coming weeks, investors should keep an eye on OMZNF.
Traders Corner
OMZNF stock is below the 20-Day and 50-Day Moving averages of $0.2956 and $0.2948 respectively. The stock is trading in the neutral zone with the RSI at 45.
