Osisko details $32.5 million placement with strategic investors
Osisko Metals Inc. [OM-TSXV, OMZNF-OTC] on Wednesday said it expects to complete a $32.5 million non-brokered private placement with certain strategic investors.
Net proceeds are expected to be used to advance the company’s Gaspe Copper project in Quebec, including drilling, permitting and technical studies and for general corporate purposes. Closing is expected to occur on December 16, 2025.
It said the private placement will consist of 67.7 million common shares priced at 48 cents per share. The financing is expected to include subscriptions from Hudbay Minerals Inc. [HBM-TSX, NYSE] (29.2 million common shares for gross proceeds of $14 million), Agnico-Eagle Mines Ltd. (AEM-TSX, AEM-NYSE) has indicated that it intends to subscribe for 26 million shares, generating gross proceeds of $12.5 million, pursuant to an existing participation right. Franco-Nevada Mining Corp. [FNV-TSX, NYSE] is subscribing for 4.2 million shares, generating gross proceeds of $2.0 million. A strategic institutional investor is subscribing for 8.3 million common shares for gross proceeds of $4.0 million.
The company said the size of the private placement will depend on, among other things, certain contractual participation rights granted by the company to Glencore Canada Corp.
“We are pleased to welcome Hudbay Minerals as a new significant shareholder,’’ said Osisko Metals CEO Robert Wares. “We also appreciate the continued participation of Agnico-Eagle and two of our existing principal and strategic shareholders,’’ he said.
After giving effect to the private placement, but before giving effect to any other issuance of common shares (including the Glencore participation right), Hudbay is expected to own 29.2 million shares, or 4.3% of the issued and outstanding common shares of Osisko on a non-diluted basis; Agnico-Eagle will own 87.8 million shares or 12.5%,
As part of the private placement, Hudbay will be granted certain rights, including top-up rights and the right to participate in future offerings upon Hudbay’s ownership interest increasing to 9.9%, and the right to board representation.
On Wednesday, Osisko shares rose 8.3% or $0.04 to 52 cents. The shares currently trade in a 52-week range of 56 cents and 24.5 cents.
The Gaspe copper project is located next to the town of Murdochville in the Gaspe Peninsula, on the traditional territory of the Mi’gmaq First Nation of Gespe’gew’gi.
The company is currently focused on resource expansion at the Gaspe copper system, with current indicated mineral resources of 824 million tonnes of grade 0.34% copper equivalent (CuEq) and inferred resource of 670 million tonnes grading 0.38% CuEq. Osisko aims to restart the Murdochville Gaspe copper mine by 2031.
The company said the former mine site contains excellent estimated resources of copper, a critical and strategic mineral that is increasingly in demand worldwide, and other important byproducts in in the industry such as molybdenum.