Hopes to maintain share price to invest in Quebec copper project.

Osisko Metals Inc. Feb. 22 announced the sale of an additional 5% interest in the Pine Point zinc mine project in Northwest Territories to its joint venture partner Appian Capital Advisory LLP, hoping the funds will enable the company to advance its Gaspé Copper project in Quebec without further diluting its stock.

"The sale of the additional five percent interest in Pine Point to Appian will allow the company to advance the Gaspé Copper project without resorting to an additional equity financing, which in the current market would be excessively dilutive," said Osisko Metals CEO Robert Wares.

Being sold to Appian subsidiary, Appian Natural Resources Fund III LP, the 5% interest will provide Osisko with around C$8.33 million (US$6.18 million), of which approximately C$6.66 million (US$4.94 million) was paid in cash, with the remaining balance to be paid based on other factors.

This transaction increases Appian's interest in Pine Point Mining Limited, a JV company to advance the zinc project, to 65%.

Forming a joint venture with London-based private equity firm Appian back in April of last year, the C$100 million (US$72.9 million) investment was intended to boost exploration at the historic Pine Point zinc-lead project to "shovel-ready" status as quickly as possible.

Pine Point Mining Limited

Map of last year's drilling that shows the general outline of the Pine Point zinc-lead property.

With a project that still holds roughly 15.8 million metric tons of indicated resource averaging 4.16% zinc and 1.53% lead, plus 47.2 million metric tons of inferred resource averaging 4.43% zinc and 1.68% lead after it was owned and operated by Teck Resources in the 1960s and of which it mined roughly 14 billion pounds of zinc and 4 billion lb of lead from around 64 million metric tons of ore over 20 years, Appian saw potential in this energy metals' mine and wanted in.

"We thank Appian for their committed interest in the Pine Point project and look forward to a continued productive joint venture," finished Wares.