With a private placement that exceeded US$203 million, Osisko Development has strengthened its financial position to advance the construction of its Cariboo Gold Project, located in British Columbia. This transaction, which combined a brokered and non-brokered issue, represents a critical step in the company’s strategy to consolidate its position as a midstream gold producer.
A dual placement structure
Mining issued a total of 99,065,330 units at a price of US$2.05 per unit. Of these, 58.56 million units corresponded to a brokered offering for approximately US$120 million, while the remaining 40.5 million units were traded directly, without placement banks, amounting to US$83 million. Each unit includes one common share and a half warrant, with the right to acquire one additional share at US$2.56 until August 2027.
[post_relacionado]One of the keys to this transaction was the participation of Double Zero Capital LP, which subscribed around US$75 million. This investment gives it a 16% stake in Osisko Development on a non-diluted basis, and potentially up to 21.9% if it exercises its warrants, with regulatory limitations in place. In addition, the firm signed a rights agreement allowing it to nominate a director to the board.
Funding secured for the development of the Cariboo project
The funds raised will be used primarily to cover the capital required to start up the Cariboo Gold Project. Cariboo Gold Project. This financial boost is complemented by a US$450 million credit facility previously arranged with Appian Capital Advisory, which provides the company with a solid framework to cover construction costs.
Insider executives also participated in the placement, with a total investment of close to US$1.3 million.
All securities issued will be subject to a hold period of four months and one day, in accordance with Canadian regulations, and the transaction is awaiting final approval from the TSX Venture Exchange.
Medium-term outlook
With this capital injection, Osisko Development consolidates its roadmap towards medium-scale gold production.
The confidence of institutional investors, together with the concentrate purchase agreements under negotiation, reinforce the economic viability of the project and position the company in a strategic position within the North American mining sector. North American mining sector.
Source and photo: Osisko Development