Osisko Development Secures $195 Million for Its Gold Projects
Major Financing Agreement for Osisko Development
Osisko Development Corp. (NYSE: ODV) has made significant strides by entering into a considerable financing agreement. The agreement involves a syndicate of underwriters, prominently featuring BMO Capital Markets and RBC Capital Markets, who have committed to purchase a staggering total of 58,560,000 units at an impressive issue price of US$2.05 per unit. This strategic initiative is projected to generate gross proceeds of approximately US$120 million, earmarked for further investments and developments in the company's primary gold projects.
Details of the Financial Structure
Each unit in this offering comprises one common share and half a common share purchase warrant, with each warrant allowing the holder to secure one additional share at an exercise price of US$2.56 over a period of two years. This structure is designed to create value for investors while aligning their interests with the company's long-term goals.
Provision for Additional Units
The company has also granted underwriters an option to acquire an additional 2,440,000 units, allowing the total offering size to potentially rise to $125 million. This provides a significant cushion for Osisko Development as it maneuvers through the complexities of the capital markets.
Strategic Investor Collaboration
Simultaneously, a non-brokered private placement is set to occur, which will involve 36,600,000 units issued to a strategic investor at the same issue price, generating an additional US$75 million. The collaboration with this strategic investor will not only enhance funding but also grant them the right to propose a director to the board, reinforcing the governance aspect of Osisko Development.
Funding Utilization for Strategic Growth
Osisko Development plans to channel the net proceeds from both the offering and the private placement into the equity portion of its ambitious Cariboo Gold Project. This project is pivotal in advancing their vision of becoming a significant player in gold production. Moreover, they aim to utilize these funds for general corporate purposes, ensuring sustainability and operational efficiency.
In addition to this financing, the company is leveraging a US$450 million project loan from Appian Capital Advisory Limited, which further solidifies its financial foundation. By actively engaging in discussions with commodity traders for potential high-quality concentrate off-take agreements and exploring other financing options, Osisko Development is strategically positioning itself to enhance its operational capabilities.
Next Steps and Expected Timelines
Anticipation is building as the offering is expected to close around mid-August, contingent on securing necessary regulatory approvals. The closing of both the offering and the private placement are planned to occur on the same date, although they remain independently conditional.
About Osisko Development Corp.
Osisko Development Corp. stands out in the mining landscape for its commitment to developing mining assets that emphasize sustainability and social responsibility. The company is focused on not just advancing the Cariboo Gold Project in British Columbia but also utilizes its experience in legacy mining districts within North America. They are determined to develop projects that minimize risks while maximizing resource extraction, ensuring long-term success in the mining sector.
Company Contact Information
For more information about Osisko Development and its current offerings, please reach out to:
Sean Roosen
Chairman and CEO
Email: sroosen@osiskodev.com
Tel: +1 (514) 940-0685
Philip Rabenok
Vice President, Investor Relations
Email: prabenok@osiskodev.com
Tel: +1 (437) 423-3644
Frequently Asked Questions
What is the primary purpose of the financing announced by Osisko Development?
The financing aims to fund the equity portion of the Cariboo Gold Project and general corporate purposes.
How much total financing is Osisko Development aiming to secure?
The total financing, including the underwriter's option, is projected to reach up to US$125 million.
Who are the underwriters involved in the financing deal?
BMO Capital Markets and RBC Capital Markets are the lead underwriters of the financing.
What strategic move accompanies the brokered offering?
Alongside the brokered offering, Osisko Development plans a non-brokered private placement with a strategic investor.
How does Osisko Development plan to utilize the funds?
Funds will be allocated towards the Cariboo Gold Project and various corporate functions to enhance overall operations.
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