Osisko sells Mexican gold asset, keeps key stake

Osisko Development (TSX-V, NYSE: ODV) has struck a deal to sell its non-core San Antonio gold project in Sonora, Mexico, to Axo Copper (TSX-V: AXO) in an all-share transaction that leaves Osisko with a 9.99% stake in the buyer.Axo will acquire Sapuchi Minera, the Osisko subsidiary that holds the San Antonio concessions, with closing subject to regulatory approvals. Osisko will receive about 15.3 million Axo shares or the amount needed to secure its 9.99% non-diluted interest, along with contingent payments tied to project milestones.Osisko is entitled to 70% of any Mexican value-added tax refund owed to Sapuchi. It will collect a $2 million cash or share payment when Axo files a National Instrument 43-101 feasibility study and another $2 million when the first gold is poured. If Axo raises at least $10 million in equity, Osisko will receive extra shares to maintain its initial ownership level.Chief executive Sean Roosen said the sale fits the company’s plan to concentrate capital and management time on core assets. He added that Axo is positioned to advance San Antonio, which has been idle since late 2023.San Antonio is not considered material within Osisko’s portfolio. The company is focusing on its 100%-owned Cariboo gold project in British Columbia, Canada, and its Tintic project in Utah, US, as it works to become an intermediate gold producer.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com