Roscan Enters Into Royalty Sale Agreement With Osisko Gold Royalties for Proceeds of Up to $10 Million

Rhea-AI Summary

Roscan Gold Corporation has entered into a royalty financing agreement with Osisko Gold Royalties regarding its Kandiolé Project in Mali. Osisko will acquire a 1.0% net smelter return (NSR) royalty for $5 million, with an option to purchase an additional 1.0% NSR for another $5 million. This strategic partnership aims to enhance Roscan's project development and resource growth. The deal also grants Osisko a right of first refusal on future royalties related to the Property. CEO Nana Sangmuah expressed optimism about the collaboration.

Positive

• Secures $5 million in upfront capital through royalty financing.
• Strategic partnership with a reputable firm in Osisko Gold Royalties.
• Potential to unlock further value on the Kandiolé Project, situated between major gold mines.

Negative

• None.

TORONTO, ON / ACCESSWIRE / December 2, 2022 / Roscan Gold Corporation ("Roscan" or the "Company") (TSX-V:ROS)(FSE:2OJ)(OTCQB:RCGCF) is pleased to announce that it has entered into a royalty financing agreement (the "Agreement") with Osisko Gold Royalties Ltd ("Osisko") involving a royalty financing related to the Company's entire 401.8 Km² Kandiolé Project in Mali, West Africa (the "Property").

Osisko has initially acquired a 1.0% net smelter return ("NSR") royalty for upfront consideration of $5.0 million (the "Royalty"). Pursuant to the Agreement, Osisko will retain the option to purchase a second 1.0% NSR (for a total NSR royalty percentage of 2.0%) on the Property at any time for an additional $5.0 million (the "Additional Royalty"). Furthermore, the Company will have the right to compel Osisko to acquire the Additional Royalty in the event Roscan receives a long-term exploitation license on the Property from the Malian government.

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.

Nana Sangmuah, President and Chief Executive Officer of Roscan, commented: "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. This financial endorsement will help the Company accelerate our objectives of further resource growth and advancing project development."

Advisors

INFOR Financial Inc. acted as financial advisor and Irwin Lowy, LLP acted as legal advisor to Roscan.

About Roscan

Roscan Gold Corporation is a Canadian gold exploration company focused on the exploration and acquisition of gold properties in West Africa. The Company has assembled a significant land position of 100%-owned permits in an area of producing gold mines (including B2 Gold's Fekola Mine which lies in a contiguous property to the west of Kandiolé), and major gold deposits, located both north and south of its Kandiolé Project in West Mali.

For further information, please contact:

Nana Sangmuah
President & CEO
Tel: (902) 832-5555
Email: info@Roscan.ca

Forward Looking Statements

This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information is characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, changes in the state of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, and other risks involved in the mineral exploration and development industry, including those risks set out in the Company's management's discussion and analysis as filed under the Company's profile at www.sedar.com. Forward-looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including that all necessary governmental and regulatory approvals will be received as and when expected. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The Company disclaims any intention or obligation to update or revise any forward-looking information, other than as required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Roscan Gold Corporation

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https://www.accesswire.com/729854/Roscan-Enters-Into-Royalty-Sale-Agreement-With-Osisko-Gold-Royalties-for-Proceeds-of-Up-to-10-Million

FAQ

What is the recent agreement between Roscan Gold Corporation and Osisko Gold Royalties?

Roscan Gold Corporation entered a royalty financing agreement with Osisko Gold Royalties, allowing Osisko to acquire a 1.0% NSR royalty for $5 million, with an option for an additional 1.0% NSR.

How much funding is Roscan Gold Corporation receiving from Osisko Gold Royalties?

Roscan Gold Corporation is receiving $5 million upfront through the royalty financing agreement with Osisko Gold Royalties.

What are the terms of the royalty financing agreement for RCGCF?

The agreement allows Osisko to acquire a 1.0% NSR royalty for $5 million, with the possibility to purchase an additional 1.0% NSR for another $5 million at any time.

How does the agreement with Osisko Gold Royalties affect Roscan's Kandiolé Project?

The agreement is expected to accelerate Roscan's objectives of resource growth and advancing project development at the Kandiolé Project located in Mali.

What rights has Osisko Gold Royalties obtained in relation to Roscan's properties?

Osisko has been granted a right of first refusal on future royalties and streams related to Roscan's Kandiolé Project and any contiguous properties.