MONTREAL, Oct. 13, 2022 (GLOBE NEWSWIRE) -- Osisko Metals Incorporated (the "Company or "Osisko Metals") (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: 0B51) and the Northwest Territories Power Corporation (NTPC) are pleased to announce that they have signed a Memorandum of Understanding (MOU) that outlines the process of negotiating power connection to the Taltson hydroelectric grid and power purchase agreements.
The MOU will allow both parties to explore, discuss and establish mutually agreeable arrangements through which NTPC can supply and sell hydroelectric power and how Osisko Metals can purchase this electricity and any related services for use at the Pine Point Project site. The sale of excess electricity generated at the Taltson Hydroelectric Facility will be a significant part of the discussions. Depending on the time of year, available capacity from Taltson facility ranges from approximately 3.5 megawatts to 8 megawatts.
The MOU does not commit either party to a power connection agreement but does provide a framework to continue the informal discussion between NTPC and Osisko Metals that has been underway over the past several years.
Jeff Hussey, President and COO of Osisko Metals Incorporated also commented, “The Pine Point Project would require additional power when production begins, currently projected to be in 2028. The potential to access clean hydropower is an attractive opportunity that we want to explore further with NTPC. Our preference is to find ways to maximize the consumption of hydroelectric power, thereby reducing the Project’s carbon footprint and reducing operating costs.”
Diane Archie, Minister Responsible for NTPC, commented, “The Government of the Northwest Territories is optimistic about the potential to welcome a new industrial customer in the South Slave to utilize excess capacity from the Taltson Hydroelectric Facility. The Memorandum of Understanding between NTPC and Osisko Metals is a positive sign of future economic growth, benefiting all residents.”
Cory Strang, President and CEO of NTPC mentioned, “NTPC is committed to being the power provider of choice in the NWT and we look forward to advancing discussions with Osisko Metals on how we can support their efforts to bring the Pine Point Project back into operation. A potentially new industrial customer in the South Slave using the Taltson system’s excess hydroelectricity capacity will help to moderate electricity rates for all customers.”
NTPC is a wholly owned subsidiary of NT Hydro, which in turn is 100 percent owned by the Government of the Northwest Territories.
Media Contacts:
Jeff Hussey
President and COO
Pine Point Mines Ltd.
Email: info@osiskometals.com
Doug Prendergast
Manager, Communications
Northwest Territories Power Corporation
Email: dprendergast@ntpc.com
About Osisko Metals
Osisko Metals Incorporated is a Canadian exploration and development company creating value in the critical metals space. The Company controls one of Canada’s premier past-producing zinc mining camps, the Pine Point Project, located in the Northwest Territories for which the 2022 PEA has indicated an after-tax NPV of $603M and an IRR of 25% is based on the current Mineral Resource Estimates that are amenable to open pit and shallow underground mining and consist of 15.7Mt grading 5.55% ZnEq of Indicated Mineral Resources and 47.2Mt grading 5.94% ZnEq of Inferred Mineral Resources. Please refer to the technical report entitled “Preliminary Economic Assessment, Pine Point Project, Hay River, Northwest Territories, Canada” dated July 30, which has been filed on SEDAR. The Pine Point Project is located on the south shore of Great Slave Lake in the Northwest Territories, near infrastructure, and paved highway access, and also has an electrical substation as well as 100 kilometres of viable haulage roads already in place.
The Company is also in the process of acquiring, from Glencore Canada, a 100% interest in the past-producing Gaspé Copper Mine, located near Murdochville in the Gaspé peninsula of Quebec. The Company is currently focused on resource evaluation of the Mount Copper Expansion Project that hosts a NI43-101 Inferred Resource of 456Mt grading 0.31% Cu (see April 28, 2022 press release). Gaspé Copper hosts the largest undeveloped copper resource in Eastern North America, strategically located near existing infrastructure in the mining-friendly province of Quebec.
For further information on this press release, visit www.osiskometals.com or contact:
Robert Wares, CEO of Osisko Metals Incorporated
Email: info@osiskometals.com www.osiskometals.com
Cautionary Statement on Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as at the date of this news release. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance are not statements of historical fact and constitute forward-looking information. This news release may contain forward-looking information pertaining to the Pine Point Project, including, among other things, the results of the PEA and the IRR, NPV and estimated costs, production, production rate and mine life; the expectation that the Pine Point Project will be an robust operation and profitable at a variety of prices and assumptions; the expected high quality of the Pine Point concentrates; the potential impact of the Pine Point Project in the Northwest Territories, including but not limited to the potential generation of tax revenue and contribution of jobs; and the Pine Point Project having the potential for mineral resource expansion and new discoveries. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management, in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, including, without limitation, assumptions about: favourable equity and debt capital markets; the ability to raise additional capital on reasonable terms to advance the development of its projects and pursue planned exploration; future prices of zinc and lead; the timing and results of exploration and drilling programs; the accuracy of mineral resource estimates; production costs; operating conditions being favourable; political and regulatory stability; the receipt of governmental and third party approvals; licenses and permits being received on favourable terms; sustained labour stability; stability in financial and capital markets; availability of equipment; and positive relations with local groups. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information are set out in the Company’s public documents filed at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accept responsibility for the adequacy or accuracy of this news release.
