Osisko Development closes US$34.5 million financing
Osisko Development Corp. [ODV-TSXV] has raised US$34.5 million after closing the final tranche of a private placement financing that will be used to fund the advancement of its Cariboo and Tintic projects.
Under the terms of the financing, which was announced on September 4, 2024, the company issued 19.1 million units priced at US$1.80 per unit. That included US$24.2 million from the sale of 13.4 million units, which closed on October 1, 2024, and US$10.3 million from the sale of 5.7 million units, which closed on October 11, 2024.
Each unit consists of one common share and one common share purchase warrant, each of which entitles the holder to purchase one additional common share at a price of US$3.00 per warrant share prior to October 1, 2029.
Osisko Development shares rose 2.1% or $0.06 to $2.92. The shares trade in a 52-week range of $4.87 and $2.32.
Osisko Development is aiming to become an intermediate gold producer by advancing its 100%-owned Cariboo gold project in central British Columbia, the Tintic project in Utah, and the San Antonio gold project in Sonora, Mexico.
The Cariboo project is located in the historic Wells-Barkerville mining camp and consists of three different sites, including the Mine Site Complex near the District of Wells, the Bonanza Ledge site and the QR Mill.
In the second quarter ended June 30, 2024, Osisko said it sold 805 ounces of gold from operating activities, consisting of 790 ounces sold from the Trixie test mine, and the balance from the Cariboo gold project by processing stockpiles at a third-party facility.
During the second quarter, the company posted $2.6 million in revenue, compared to $10.8 million in the second quarter of 2023.
On June 3, 2024, the company announced that in connection with the terms of its previously completed acquisition in May 2022 of a 100% ownership interest in the Tintic Project, Osisko said it had satisfied the second of five deferred payments to the sellers. The deferred consideration of US$2.5 million was settled by the issuance of 1.23 million common shares.
As previously stated, Osisko received the environmental assessment certificate for the Cariboo Gold Project in October 2023. The BC Mines Act and Environmental Management Act permits have been drafted and are currently under review by the company and the Mine Review Committee, the company said in its second quarter report.
Osisko also said it anticipates completing its permit application referral and receiving final construction and operating permits in the third quarter of 2024. During the first quarter of 2024, under an existing provincial permit, the company commenced an underground development drift from the existing Cow Portal into the Cariboo project’s mineral deposit at the Lowhee Zone. The objective of the bulk sample work program is to reach the ore body and extract a 10,000 tonne bulk sample of mineralized material for ore sorter, heaving equipment and mining testing.