Bowmore Exploration (TSXV: BOW) found a bigger brother to help it fund its exploration ambitions and source additional projects for the company. The junior mineral explorer, with projects in Mexico and Quebec, announced that it has signed a letter of intent with Osisko Mining Corporation to become strategic partners.
Under the terms of the letter of intent, Osisko will acquire $3.0 million of a proposed $4.2 million non-brokered private placement and will have the right to appoint two nominees to Bowmore’s board of directors.
The non-brokered placement consists of the sale of 21 million units at $0.20 per unit for gross proceeds of $4.2 Million. Osisko will acquire 15 million units for gross proceeds of $3.0 million and the remaining 6 million units will be acquired by insiders and other certified investors. Each unit consists of one common share and a ½ warrant. Each warrant has an exercise price of $0.35 for a period of 48 months.
Osisko’s primary project is the Canadian Malartic Gold Deposit, where it has already defined 6.28 million ounces of reserves. Bowmore noted that Osisko has a number of additional grass-roots exploration prospects in Canada, and would effectively use Bowmore as its exploration vehicle. Additionally, Bowmore stated that its Santa Elvira gold-copper property in Mexico “is of interest to Osisko”.
Mr. Paul Dumas, President and CEO of Bowmore commented, "We are extremely pleased to team up with OSISKO. We have an established relationship with the executives of OSISKO and we respect their mine finding capabilities. They have proven their mining and exploration capabilities with the "Canadian Malartic" project and we feel that this partnership will provide access to a broad range of resources and contacts that would benefit Bowmore and its shareholders. This alliance will create synergies which will significantly increase the chances of discovery while lowering exploration risk for both parties."