|
10:45 AM EDT, 05/31/2016 (MT Newswires) -- Falco Resources (FPC.TO) has closed its financing with Osisko Gold Royalties Ltd. (OR.TO) whereby Osisko will provide a C$10 million loan. The Loan will be used for the advancement of the Horne 5 Project and for general corporate purposes.
Under the terms of the financing, Osisko has provided Falco with a C$10 million loan. The Loan has an 18-month maturity, and interest shall be payable on the principal amount at a rate per annum that is equal to 7%, compounded quarterly, payable upon repayment of the principal amount.
Over the next 18 months, Falco and Osisko shall negotiate in good faith the terms, conditions and form of a silver and/or gold stream agreement, which shall be substantially in the form typical for such transaction in the industry, whereby Osisko may provide Falco with a portion of the development capital required to build the Horne 5 Project. In this case, the principal amount of the Loan and any accrued interest will be applied against the Stream deposit.
At the maturity date, if Falco and Osisko have not concluded a Stream Agreement, the principal amount of the Loan will be converted into a 1% net smelter return royalty on the Horne 5 Project and accrued interests will be paid in cash.
Under certain events of default, Osisko may, at its option, require the repayment of the principal amount and the accrued interest in cash.
Falco Resources shares were last up 9.2% at $0.950 apiece.
Price: 0.950, Change: +0.080, Percent Change: +9.2
|
