(Kitco News) - On Monday, Osisko Mining (TSX: OSK) announced that it has entered into an agreement with Canaccord Genuity on behalf of a syndicate of underwriters to sell, on a "bought deal" private placement basis, 24,195,000 units of the corporation at a price of C$3.10 per unit for gross proceeds of C$75,004,500.
The company said it has also granted the underwriters an option to purchase up to an additional 8,065,000 units at the offering price for additional gross proceeds of up to C$25,001,500 exercisable at any time up to 48 hours prior to the closing of the offering.
According to a company statement, the net proceeds received from the offering will be used to advance the company's Windfall gold project, as well as for working capital and general corporate purposes.
The company’s 100% owned Windfall gold project located in the Abitibi greenstone belt, Urban Township, Eeyou Istchee James Bay, Québec.
Windfall’s feasibility study results (November 2022) showcase that at US$1,600 gold price, the project's after-tax NPV is C$1,168.4 million, with after-tax IRR of 33.8% and after-tax payback after start of production of 2 years. Average after-tax free cash flow is C$257 million per full year of production (C$2.3 billion cumulative free cash flow).
The project's full year average production is 306,000 oz Au, at 8.1 g/t Au average grade (fully diluted), with peak production of 374,000 oz Au in year two. All-in sustaining cost is US$758/oz. Capex is US$607 million (includes US$38 million as contingency in direct and indirect costs).
Osisko is a mineral exploration company focused on the acquisition, exploration, and development of precious metal resource properties in Canada. Osisko holds a 100% interest in the high-grade Windfall gold deposit located between Val-d'Or and Chibougamau in Québec and holds a 100% undivided interest in a large area of claims in the surrounding Urban Barry area and nearby Quévillon area.
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