Osisko Metals Incorporated has completed its acquisition of Pine Point Mining Limited.
"We are pleased to have concluded the transaction with Pine Point, allowing Osisko Metals to advance its goal of becoming a leading base metal mining company in Canada," stated Jeff Hussey, president and chief executive officer of Osisko Metals, in a Feb. 23 news release.
The transaction, which involves shares, has a value of about $34 million.
In a Feb. 26 news release, Pine Point Mining also announced a 50,000-metre drill program for 2018 has started at Pine Point, where a lead/zinc mine operated until the 1980s.
"We are planning an aggressive exploration program to confirm, upgrade and expand the portfolio of over 40 historical deposits," stated Hussey.
In early February, three drill rigs were mobilized to the Pine Point project and began drilling high priority targets that have poor summer access.
The winter drilling is to continue over approximately five weeks before temporarily stopping for spring break-up.
Drilling is expected to resume by May.
Hussey told The Hub that the new ownership is very excited to finish the transaction and initiate the exploration drilling.
"We have to start with exploration and then we need to get in touch with all the stakeholders and start developing a relationship and seeing if everyone is interested in developing Pine Point again," he said. "And I think that is the case."
Hussey noted that company officials have already been meeting representatives of communities and First Nations.
The president and CEO of Osisko Metals said he will be visiting Pine Point during the week of March 12.
Osisko Metals is a Canadian exploration and development company with an emphasis on zinc mineral assets.
Pine Point Mining Limited – formerly Darnley Bay Resources Ltd. – acquired a 100 per cent interest in the Pine Point project in December 2016.
Since that time, a preliminary economic assessment of the project showed a potential mining operation which, over a 13-year mine life, would have an after-tax net value of $210.5 million and a payback of 1.8 years.
The new exploration program at Pine Point will also include an airborne geophysical survey planned for the second quarter of 2018.