Osisko Development Secures C$82.5 Million Through Placement
Osisko Development Announces Successful Private Placement
Osisko Development Corp. has recently concluded a remarkable private placement, raising approximately C$82.5 million through the issuance of common shares. This oversubscribed offering saw a total of 15,409,798 common shares, providing crucial funding for the company's ongoing projects.
Details of the Offering
The private placement consisted of several notable issuances aimed at enhancing the financial foundation of Osisko Development. This offering was carefully structured to capitalize on multiple exemptions allowing for a broader reach within investor circles.
Flow-Through Shares Issuance
One of the significant components included the issuance of life offering shares compliant with the Canadian securities regulations, specifically NI 45-106. This spoke to Osisko's strategic approach, benefiting from an innovative funding model to incur eligible Canadian exploration expenses.
The offerings segmented into different categories, including:
- National Flow-Through Shares: A total of 2,990,000 shares priced at C$6.69, netting around C$20 million;
- British Columbia Flow-Through Shares: 1,444,000 shares at C$6.93, raising approximately C$10 million;
- Standard Common Shares: 4,182,000 shares issued at C$4.78 brought in close to C$20 million.
Concurrent Private Placement
Beyond the flow-through shares, Osisko also executed a concurrent private placement, which involved an additional 6,793,798 common shares priced at C$4.78 each, resulting in gross proceeds of C$32 million. This dual approach to capital raising reflects the company's robust operational strategy.
Use of Proceeds
The sponsorship of these funds will largely aim toward advancing the Cariboo Gold Project in British Columbia. Fund allocation also includes necessary pre-construction activities. This commitment demonstrates the company’s focus on growth and sustainability within the industry.
Role of Underwriters
The successful offering was co-led by notable financial institutions, including National Bank Financial Inc., BMO Capital Markets, and RBC Capital Markets. Their expertise and credibility played a significant role in navigating the complexities of such a substantial financial operation.
Future Prospects
Osisko Development's strategy is to develop substantial long-term mining operations while minimizing risks associated with exploration and resource development. Understanding the importance of sustainable operations, the company focuses on socially responsible mining practices to enhance its brand reputation while addressing environmental concerns.
This strong financial foundation positions Osisko Development as a formidable contender in the North American gold mining sector, potentially advancing opportunities to amplify its production capabilities responsibly.
Company Overview
Osisko Development Corp. primarily specializes in the development of gold mining projects across North America, focusing on historically rich mining regions. Their flagship Cariboo Gold Project exemplifies their commitment to responsible mining practices and sustainable resource management.
Frequently Asked Questions
What was the total amount raised by Osisko Development?
The company raised approximately C$82.5 million through its recent private placement.
What are flow-through shares?
Flow-through shares are investment vehicles that allow companies to pass tax benefits to investors, primarily focused on Canadian exploration expenses.
Who led the underwriting of the offering?
The offering was co-led by National Bank Financial Inc., BMO Capital Markets, and RBC Capital Markets.
How will the funds be utilized?
Funds will primarily support the Cariboo Gold Project and related pre-construction activities.
What is Osisko Development Corp.'s main focus?
The company aims to become an intermediate gold producer by advancing sustainable mining projects across North America.
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