representative work

Sable Completes Strategic Investment by Osisko Gold and Grants Royalty to Osisko Gold

08/28/2019

On August 29, 2019, Sable Resources Ltd. completed a non-brokered private placement financing with Osisko Gold Royalties Ltd of 16,000,000 units of Sable at a price of $0.13 per unit for total gross proceeds of approximately $2 million.

In connection with the financing, Osisko has a a) right of first refusal over any royalty, stream or similar right in Sable’s properties; b) an equity participation right to maintain pro-rata ownership interest so long as Osisko owns more than 5% of the outstanding common shares of Sable; and c) the right to nominate one person to Sable’s board of directors so long as Osisko owns more than 5% of the outstanding common shares of Sable.

In addition, on September 27, 2019, Sable entered into a definitive royalty purchase agreement with its wholly owned Mexican subsidiaries and Osisko in which Osisko was granted a 1% net smelter returns royalty on Sable’s Mexican properties in exchange for proceeds of $5 million. Pursuant to the definitive royalty purchase agreement, Sable has also granted Osisko the right to acquire an additional 1% net smelter royalty for $5.5 million.

Cassels acted for Sable with a deal team that included Jay Goldman, Cathy Mercer, Lindsay Clements, Ali Naushahi and Miriam El Ofir (Securities and Mining).