(Toronto, February 20, 2019) Osisko Mining Inc. (OSK:TSX, “Osisko“) and Chantrell Ventures Corp. (NEX:CV.H, “Chantrell”) are pleased to announce that they have entered into a binding letter agreement dated as of February 19, 2019 (the “Letter Agreement”) . The Letter Agreement outlines the proposed terms and conditions upon which Osisko will effect a business combination that will result in a reverse takeover of Chantrell by Osisko (the “Proposed Transaction”). Pursuant to the Proposed Transaction, Osisko will transfer certain non-core assets of Osisko with a value of approximately $99.9 million to Chantrell in exchange for shares of Chantrell. In addition the shares of Chantrell will be subject to a consolidation on a 40:1 basis, subject to adjustment.
John Burzynski, President and CEO of Osisko stated: “When we launched the new Osisko Mining in 2015 we employed the same consolidation strategy used successfully in the Malartic Camp, with the difference being we began consolidating ground in three camps. Our exceptional success at Windfall has been based on focusing all of our efforts on the Urban Barry – Quevillon district. As a result we have done only minimal work on advancing a number of our early Osisko Mining acquisitions. Drilling out the Windfall deposit and accelerating exploration on our extensive 3,500 square kilometre land package in the Urban Barry – Quevillon district will continue to be the focus of Osisko Mining. The non-core assets will now become important pieces for O3 Mining to independently continue the consolidation strategy with the objective of defining the next significant deposit in Canada’s premier mining districts.”