Osisko Development closes CDN $68.6 million financing
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(Kitco News) - Osisko Development (ODV: TSX-V) announced today the successful completion of its previously-announced non-brokered private placement of 9,346,464 units at a price of CDN$7.50 per unit for aggregate gross proceeds of approximately CDN$68.6 million.
The company said that the proceeds of the offering will be used to further develop the Cariboo gold project, advance the San Antonio gold project towards production and for general corporate purposes.
Osisko intends to close a second tranche of the offering, up to approximately CDN$12 million to accommodate additional interest for the units on or about January 29, 2021.
Chair and CEO Sean Roosen stated, "We are thrilled to have raised over CDN$200 million since October 2020 to capitalize Osisko Development. The proceeds that we've raised, coupled with our equity investments and expected near-term cash flows, forms the foundation of continued development of the Cariboo gold project. We thank our partners and the investment community for your support over the past couple of months to put Osisko Development in position to succeed out of the gate."
The Cariboo gold project, located in central British Columbia, is Osisko Development's flagship asset with measured and indicated resource of 21.44 Mt at 4.6 Au g/t for a total of 3.2 million ounces of gold and inferred resource of 21.69 Mt at 3.9 Au g/t for a total of 2.7 million ounces of gold.