Exploration and development company Osisko Development has locked in a $450-million financing facility with Appian Capital Advisory to fund the development and construction of its Cariboo gold project in central British Columbia.

The senior secured credit facility – structured in two tranches – includes an initial draw of $100-million, already completed, and a further $350-million available in up to four subsequent disbursements, subject to the achievement of specific project milestones and conditions.

“We are delighted to welcome Appian as a new cornerstone investor, which is a significant endorsement of the Cariboo gold project and a major milestone in advancing it towards a construction decision,” said Osisko Development chairperson and CEO Sean Roosen in a statement. “The $450-million facility represents a key financing commitment and allows us to maintain momentum toward a formal investment decision.”

Roosen added that the facility gives the company financial flexibility while supporting an array of early development activities, including infill drilling, detailed engineering, underground development, and procurement.

Appian, a private equity firm focused exclusively on mining investments, views the project as a natural fit.

“The Cariboo gold project perfectly aligns with Appian's disciplined, technically driven investment strategy,” said founder and CEO Michael Scherb. “It is situated in a stable jurisdiction, boasts a robust existing minerals base with clear upside potential, and is being led by an experienced management team.”

The funding package provides Osisko with the means to pay down its existing $25-million term loan with National Bank of Canada and cover near-term project expenditures. The Cariboo project, which is fully permitted and 100%-owned by Osisko, recently underwent an updated feasibility study.

The 2025 feasibility study outlines a low-impact underground operation with average life-of-mine gold production of 190 000 oz/y and a 22.1% after-tax internal rate of return at a base case gold price of $2 400/oz. 

The 2025 capital expenditure estimate increased to C$1.41-billion, from the 2023 feasibility study estimate of C$1.12-billion.

The average all-in sustaining cost is projected at $1 157/oz.