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TORONTO, Aug. 29, 2019 /CNW/ - Sable Resources Ltd.
(the "Company" or "Sable") (TSX Venture: SAE) announces that it has
entered into an Investment Agreement along with an Equity
Subscription Agreement with Osisko Gold Royalties Ltd ("Osisko",
OR-T) for total potential proceeds of $12.58
million (the "Financing"). Sable believes that the
Financing will provide the Company with the funding to progress its
exploration objectives over its entire portfolio for the next 4
years.
Pursuant to the Equity Subscription Agreement Osisko has
subscribed for 16 million units of Sable at a price of $0.13 per unit for a total of $2,080,000. Each unit consists of one common
share and one-half of one common share purchase warrant (each whole
common share purchase warrant, a "Warrant"). Each Warrant allows
Osisko to purchase an additional common share of Sable for a period
of three years at a price of $0.21
per common share. The subscription price of $0.13 per unit represents a 12% premium to
Sable's 30-day volume-weighted average price per common
share. Following the unit subscription, Osisko now owns
approximately 9.86% of the issued and outstanding common shares of
Sable on a non-diluted basis.
In connection with the Financing, Osisko and Sable have also
entered into a binding Investment Agreement, the provisions of
which include, inter alia, the following rights in favor of
Osisko:
- A right of first refusal over any royalty, stream, or similar
right in Sable properties;
- Equity participation right to maintain pro-rata ownership
interest so long as Osisko owns more than 5% of the outstanding
common shares of Sable; and
- The right to nominate one person to Sable's board of directors
so long as Osisko owns more than 5% of the outstanding common
shares of Sable.
In addition, Sable and Osisko will also be entering into a
Royalty Purchase Agreement which will allow Osisko to acquire a 1%
net smelter return royalty ("NSR") on properties controlled by
Sable's wholly owned subsidiaries in Mexico for $5
million (the "Initial Properties"). The royalty will extend
to any additional properties (the "Future Properties") acquired by
Sable within a period of 4 years from the closing of the Royalty
Purchase Agreement (the "Maturity Date").
As part of the Royalty Purchase Agreement, Sable will also grant
Osisko the right to acquire an additional 1% NSR for $5.5 million on all minerals produced from
Initial Properties and Future Properties, this right will expire on
the Maturity Date. Completion of the royalty transactions with
Osisko remains subject to execution of definitive documentation and
the approval of the TSX Venture Exchange.
The 16 million common shares and 8 million Warrants issued to
Osisko are subject to a statutory hold period expiring on
December 29, 2019. The issuance of
such securities remains subject to the final approval of the TSX
Venture Exchange.
Sable President/CEO Tom
Obradovich stated "This investment by Osisko demonstrates
the confidence they have in our exploration team and quality of our
projects. The financing offers Sable the opportunity to drill test
our permitted Vinata Project as well as our other established drill
targets in Mexico, Peru and Argentina with relatively low dilution to our
existing shareholders. Exploration and drilling on Vinata will
begin immediately after closing of the financing package."
About Sable Resources Ltd.
Sable Resources Ltd. is a well-funded junior grassroots explorer
focused on the discovery of new precious metal projects through
systematic exploration in endowed terrains located in favourable,
established mining jurisdictions. Sables' main focus is developing
its large portfolio of new greenfields projects to resource stage
utilizing their Upper Level Epithermal Strategy. Sable is actively
exploring the San Juan Regional Program (35,000ha) incorporating
the Don Julio Project in San Juan
Province, Argentina, the
Mexico Regional Program (1.16Mha in application, 39,000ha titled),
incorporating the Margarita, Vinata and El Escarpe drill ready
projects.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. No stock exchange, securities commission
or other regulatory authority has approved or disapproved the
information contained herein.
Forward-Looking Statements
Certain statements contained in this press release constitute
forward-looking information. These statements relate to future
events or future performance. The use of any of the words "could",
"intend", "expect", "believe", "will", "projected", "estimated" and
similar expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking
information and are based on the Company's current belief or
assumptions as to the outcome and timing of such future events.
Actual future results may differ materially. In particular, this
release contains forward-looking information relating to, among
other things, Sable's exploration objectives over its portfolio,
the execution of the Royalty Purchase Agreement and related
definitive documentation, the grant of the NSR and approval of TSX
Venture Exchange. Various assumptions or factors are typically
applied in drawing conclusions or making the forecasts or
projections set out in forward-looking information. Those
assumptions and factors are based on information currently
available to the Company. Although such statements are based on
reasonable assumptions of management, there can be no assurance
that any conclusions or forecasts will prove to be
accurate.
The forward-looking information contained in this release is
made as of the date hereof, and the Company is not obligated to
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
required by applicable securities laws. Because of the risks,
uncertainties and assumptions contained herein, investors should
not place undue reliance on forward-looking information. The
foregoing statements expressly qualify any forward-looking
information contained herein.
SOURCE Sable Resources Ltd.