Pine Point, which could become one of the 10 largest zinc producers in the world. Credit: Osisko Metals
Appian’s investment will be broken down into an estimated C$75.3 million funding to advance the Pine Point project towards a final investment decision or construction approval. About C$19.8 million of that will be provided upon establishment of the joint venture. The 2022 PEA integrates updated long-term prices for zinc and lead and increased mineral resources at Pine Point, which currently is estimated at 15.7 million tonnes grading 5.55% zinc equivalent in the indicated category and 47.2 million tonnes grading 5.94% zinc equivalent inferred.
In addition to the funding commitment, Appian has also agreed to make a C$5 million investment in the common shares of Osisko Metals on closing, priced at C$0.2481 per share. The stock was trading at C$0.30 at of 12:30 p.m. ET Wednesday, up 19.6% for the day on the back of the announcement, giving Osisko Metals a market value of roughly C$60.9 million .