Osisko Development Receives $450 Million Financing for Cariboo Project

Osisko Development Secures Major Financing for Cariboo Gold Project

HIGHLIGHTS

• US$450 million loan facility acquired from strategic partner Appian Capital Advisory to fund Cariboo Gold Project.
• Initial US$100 million draw accelerates project development, enhancing financial security.
• Subsequent US$350 million draws contingent upon project milestones.
• Sustained financial flexibility by repaying an existing US$25 million loan to National Bank.

Osisko Development Corp. (NYSE: ODV, TSX-V: ODV) has announced a financing arrangement to support the advancement of its Cariboo Gold Project. The agreement with Appian Capital Advisory provides the company with a robust framework for future growth and project readiness.

With this vital funding plan, Osisko intends to optimize project outcomes while maintaining an efficient timeline for construction readiness. A significant component of this financing is the initial draw of US$100 million, which allows the company to commence essential pre-construction activities.

"This financing agreement solidifies our relationship with Appian as a cornerstone investor, reflecting strong confidence in the Cariboo Gold Project's potential to become a pivotal player in the Canadian mining landscape," stated Sean Roosen, Chairman and CEO of Osisko Development.

The funds will primarily support a comprehensive infill drill program aimed at refining mine planning estimates. They will also cater to other urgent pre-construction tasks, enhancing the overall viability and profitability of the project.

Details of the Credit Facility for Cariboo Gold Project

The Credit Facility details underline its strategic importance for the project's development:

• Total Credit Limit: US$450 million senior secured credit facility.
• Use of Funds: To repay existing debts and support pre-construction and construction activities.
• Repayment Timeline: The facility matures in 2033, offering a long-term funding solution.
• Interest Rate: Based on the 3-month Secured Overnight Financing Rate (SOFR) plus a margin.

This financing structure is particularly designed to align with the anticipated timeline for project advancements, with further draws contingent upon meeting specified project development milestones.

Support and Expertise from Appian Capital Advisory

According to Michael W. Scherb, Founder and CEO of Appian, the Cariboo Gold Project is well-positioned within a stable mining environment, showcasing significant resource potential and a solid management strategy. With Appian’s seasoned investment approach, the project is set to make substantial strides towards production.

Scherb highlighted, "The project aligns with our investment philosophy, emphasizing growth in sustainable and economically viable development across the globe, especially in resource-rich locations such as Canada. We anticipate a fruitful collaboration that can lead to successful project execution."

Osisko Development's Vision for Growth

Osisko Development aims to transition into an intermediate gold producer while minimizing development risks. With the Cariboo Gold Project at the forefront, the company is also exploring other projects, such as the Tintic Project in Utah and the San Antonio Gold Project in Mexico, which further diversify its portfolio.

The overall strategy focuses on responsible mining practices that not only seek economic returns but also prioritize social and environmental stewardship. The advancements in Cariboo are a testament to Osisko's commitment to these values, and the received financing will play a crucial role in driving this mission forward.

Conclusion

With the secured US$450 million financing from Appian Capital Advisory, Osisko Development stands poised to enhance the growth potential of the Cariboo Gold Project significantly. This partnership is expected to bolster project development, paving the way for Osisko's ambitious plans to become a key contender in the mining industry.

Frequently Asked Questions

What is the main purpose of the US$450 million financing?

The financing aims to fund the development and construction of the Cariboo Gold Project, enabling essential pre-construction activities.

Who is Appian Capital Advisory?

Appian Capital Advisory is an investment advisor focused on long-term value in the mining sector, supporting projects with strategic capital.

What are the key components of the Credit Facility?

The facility includes a US$450 million credit limit, using funds to repay existing debts, support pre-construction and construction efforts.

What is Osisko Development's broader strategy?

The company aims to become an intermediate gold producer while engaging in sustainable mining practices across diverse projects.

How will the initial draw of funds be utilized?

The initial US$100 million draw will be used for drilling, pre-construction activities, debt repayment, and operational needs related to the Cariboo Gold Project.

About The Author

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