Falco Resources (CVE:FPC) has appointed Sean Roosen, the former chief executive of Osisko Mining and current CEO of Osisko Gold Royalties, as its new chairman, following an announcement that Osisko Gold plans to increase its stake in the junior exploration company to nearly 15 percent.
The move significantly strengthens Falco's board, and positions the company on a path to success with regards to developing its Horne mine assets in Quebec. Shares reached a high of 65 cents on Friday on the back of the news, lately trading at 63 cents, up more than 8.6 percent.
So far this year, the stock has climbed 58 percent.
"Sean made an enormous contribution to the gold mining industry in the Province of Quebec during his tenure as President and CEO of Osisko Mining Corp.," said president and chief executive officer of Falco, Trent Mell.
"Falco stands to benefit from a stronger relationship with its largest shareholder in three ways: access to capital, technical bench strength and first-in-class sustainability practices.
"I have known Sean for several years and I am looking forward to working with him."
Roosen has been chairman and CEO of Osisko Gold Royalties since June of this year. Prior to this, he was the president and chief executive officer of Osisko Mining, which he co-founded, before the company was acquired by Yamana Gold (TSE:YRI) and Agnico Eagle Mines for C$3.9 billion earlier this year. The joint offer saw off a hostile bid for Osisko's giant Canadian Malartic mine in Quebec by mining giant Goldcorp (TSE:G).
Roosen drove the success of Osisko from a junior exploration company to one of the biggest intermediate gold producers. Over that period, he was responsible for developing the permitting and financing strategy to bring the $1 billion Canadian Malartic mine into production.
Falco is one of the largest claim holders in the province of Quebec, with extensive land holdings in the Abitibi Greenstone Belt. It owns 72,800 hectares of land in the Rouyn-Noranda mining camp, which represents 70 percent of the entire camp and includes 14 former gold and base metal mine sites.
The company's principal property is the Horne Mine Complex, which was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper.
Falco is hoping to replicate this with its Horne 5 deposit, the largest undeveloped deposit in the region. Its current strategy is focused on identifying opportunities to increase the size of the resource estimate within its Horne complex, while also working on exploration targets within the remainder of its large land package.
"We know the Abitibi and I believe our expertise can help Falco advance its strategic objectives," said Roosen.
"Falco controls the last of the large Abitibi camps that is not owned by a major gold producer and, as their largest shareholder, we want to help them succeed."
Falco said recently that over the next nine months, its two priorities will be to increase the size of the Horne 5 resource, and upgrade the confidence level from inferred to indicated status. In March, the company announced a maiden inferred mineral resource estimate for Horne 5, outlining 2.8 million gold equivalent ounces grading 3.41 g/t gold.