Osisko Metals (TSX: OM) plans to spin its New Brunswick exploration portfolio out into a new company, Osisko Critical Minerals Corporation, with John Burzynski as chief executive officer.
The new company, known as OCMC, will take over 2,972 mineral claim units covering about 645 square kilometres. Osisko Metals built the package by staking claims directly and through 3 option agreements signed between January and September. Those agreements will be transferred to OCMC in exchange for OCMC shares.
The main asset is the NB Copper Project, a 430 square kilometre land package in northern New Brunswick just south of the Gaspé Belt. Past exploration there targeted high-grade skarn mineralization. Limited, shallow drilling found several copper-bearing zones across an area of roughly 5 kilometres by 2 kilometres, and the property hosts 21 porphyry intrusions that have never been tested for bulk-tonnage copper.
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OCMC will also take the Key Anacon, Gilmour South and Mount Fronsac assets in the Bathurst Mining Camp. Key Anacon has an indicated resource of 1.96 million tonnes grading 5.77% zinc, 2.38% lead, 0.22% copper and 68.9 g/t silver.
“Historically there has been no exploration for these systems in northern New Brunswick, despite a near-identical geological setting and the relatively close proximity to the Gaspé Copper Project,” Burzynski said. “Much as the Osisko companies redefined gold exploration in Québec with our past work at Canadian Malartic and at Windfall, we believe there is significant untested potential on the assets that will be transferred to OCMC.”
He said OCMC plans an aggressive exploration and drilling program once the deal closes and is funded.
The spin-out lets Osisko Metals concentrate on its flagship, the past-producing Gaspé Copper mine in Québec. The company will look at ways to finance OCMC and will keep a minority stake after any financing closes.
Much of the deal is still undecided. The size and structure of OCMC’s financing, its board and management team, and the legal and tax setup are all still open, and the deal needs regulatory approval. The company gave no timeline and made no commitment to a stock exchange listing.
Osisko Metals last traded at $1.63 on the TSX.
