Osisko Development raises $203m to fund Cariboo gold project
NYSE- and TSX-V-listed Osisko Development on Friday closed a $203-million private placement to fund its Cariboo gold project in Canada.
The offering comprised 99.1-million units priced at $2.05 each. Of these, 58.6-million units were sold through a brokered deal raising about $120-million, while 40.5-million units were sold in a non-brokered placement generating about $83-million.
Double Zero Capital, a Delaware investment firm, subscribed for about $75-million, representing 15% of Osisko’s outstanding common shares following the deal.
Each unit includes one common share and one-half of a warrant, with each full warrant allowing the purchase of an additional share at $2.56 until August 15, 2027. Warrants may be accelerated if the company’s share price exceeds the exercise price for 20 consecutive trading days.
Osisko said net proceeds would fund the equity portion of capital for the Cariboo gold project and for general corporate purposes. Combined with a previously announced $450-million project loan from Appian Capital Advisory and other potential financing arrangements, the company expects sufficient funding to complete construction.
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.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation