Date Closed

July 14, 2023

Lead Office

Québec City

Value

45.00 Million USD

On July 14, 2023, Glencore Canada Corporation (“Glencore”) completed the sale of the 100% interest in its past-producing Gaspé Copper Mine (the “Gaspé Mine”) located near Murdochville, Quebec to Osisko Metals Incorporated (“Osisko Metals”) (the “Transaction”) for a purchase price including an upfront payment of US$25 million, paid by Osisko Metals by issuing a convertible note (the “Note”) to Glencore, and a deferred cash payment of US$20 million, payable upon the commencement of commercial production at the Gaspé Mine. The Note is convertible by Glencore into units of Osisko Metals at a price of C$0.40 per unit, each unit consisting of one common share and one-half common share purchase warrant of Osisko Metals. Each whole warrant will entitle Glencore to acquire one common share of Osisko Metals at a price of C$0.46 per share for a period of 3 years following the closing of the Transaction. Glencore also retained a 1% net smelter returns royalty on all mineral products from the Copper Mountain sulphide deposit and a 3% net smelter returns royalty on all mineral products extracted from the other areas of the Gaspé Mine, as well as an offtake for 100% of concentrates produced at the Gaspé Mine. Osisko Metals also undertook to incur a total of C$55 million in exploration and development expenditures at the Gaspé Mine over a period of four years from March 25, 2022, with a minimum of C$20 million to be incurred by March 25, 2024, and granted Glencore certain customary investor rights.

McCarthy Tétrault advised Glencore with a team led by Roger Taplin and Dominique Amyot-Bilodeau that included Charles-Antoine Soulière, Konstantin Sobolevski and Archanah Thurairatnam (Business), Étienne Guertin, Genevieve Loxley and Achille Treuil (Financial Services), Danielle Drolet and Florence Gagnon (Real Property) and Amelia Fong (Environment).