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(Kitco News) - Sean Roosen, CEO and chair, Osisko Development Corp., said the recent joint-venture agreement between Osisko Mining and Gold Fields for the Windfall project in Quebec, including a CAD$300 million initial cash payment, is the best deal for OSK shareholders.
Roosen spoke to Kitco at the Rule Symposium Natural Resource Investing 2023 show held in Boca Raton, Florida.
With the proceeds from the $1.2 billion investment, Osisko is fully funded to bring Windfall, which Roosen describes as "the highest-grade discovery in all of Quebec", at 9-10 grams per tonne, into production.
"This is a one-off dilution to get to the end game of being in production and maintaining 50 percent of it," he said. "Hopefully with the exploration-development, that will double and you'll end up back basically with 100 percent of what you started with today, so it's about keeping more of the assets for our shareholders and having a fully funded outcome in a very seesaw market where you don't really know what the cost of equity capital or debt capital will be."
Roosen also highlighted Osisko Development's feasibility-stage Cariboo gold project in British Columbia, the drill-ready Tintic gold and base metals project in Utah, and Osisko Gold Royalties' five percent royalty on the Canadian Malartic mine, which has paid out almost $500 million in revenue since 2014.
Kitco Mining's coverage of the Rule Symposium Natural Resource Investing 2023 was sponsored by G Mining Ventures.
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