Osisko signs 50-50 joint-venture deal with Gold Fields to develop Windfall project

TORONTO – Osisko Mining Inc. has signed a deal to form a 50-50 joint venture with South African company Gold Fields Ltd. to develop the Windfall gold project in Quebec.

Under the agreement, Gold Fields will make a $300-million initial cash payment to Osisko plus an additional payment of $300 million on issuance of the applicable permits authorizing the construction, operation and mining of the project.

Gold Fields will also fund spending for regional exploration up to a maximum of $75 million, after which regional exploration programs would be proportionately funded by each company.

In addition, Gold Fields will make two additional payments of $17 million for reimbursement of money already spent by Osisko on pre-construction expenses.

Osisko chairman and chief executive John Burzynski says the partnership strengthens the company’s balance sheet, allows it to significantly de-risk Windfall and brings the company a step closer to realizing its objective of becoming a leading Canadian gold producer.

The Windfall project is located between Val-d’Or and Chibougamau in the Abitibi region of Quebec.

This report by The Canadian Press was first published May 2, 2023.

Companies in this story: (TSX:OSK)