Osisko Development unveils pricing of US$275 million note offering
Osisko Development Corp. [ODV-TSXV, NYSE] has announced the pricing of an offering of US$275 million principal amount of 4.125% convertible notes due 2031. Proceeds will be used to fund Osisko’s Cariboo Gold project in British Columbia and for general working capital purposes.
The company said the convertible senior notes will be offered in a private placement to persons reasonably believed to be qualified institutional buyers. Pursuant to Rule 144A under U.S. Securities Act of 1033.
The notes are priced with a conversion premium of approximately 25% to the last reported sale price per share of the company’s common shares, no par value (US$2.94 per common share) on the NYSE on May 20, 2026.
Qualified institutional buyers have agreed to purchase US$225.0 million principal amount of notes. The company intends to grant the initial note purchasers an option to purchase, during a 13-day period beginning on, and including the date on which the notes are first issued, up to an additional US$25 million principal amount of notes.
Double Zero Capital, LP, an affiliate of the company, has signaled its interest in purchasing up to US$50 million worth notes in a separate concurrent private placement. The affiliate notes are expected to be sold at the same price and constitute part of the same series.
The offering and the private placement are expected to close on May 26, and May 29, 2026, respectively, subject to satisfactory closing conditions.
A portion of the net proceeds are expected to be used to purchase cash-settled capped calls to offset potential economic dilution at a cap price of US$5.88 per share, representing a premium to US$2.94, the last reported sale price of the common shares on the NYSE on May 20, 2026.
Osisko Development shares were active on the news, easing 14.25% or 57 cents to $3.43. The shares trade in a 52-week range of $6.63 and $2.50.
Osisko is a continental North American gold development company with a focus on past-producing mining camps located in friendly jurisdictions with district scale potential. The company aims to become an intermediate gold producer by advancing its flagship permitted 100%-owned Cariboo Gold Project. Its project pipeline is complemented by the Tintic Project in the historic East Tintic mining district 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.
Probable mineral reserves currently stand at 2.07 million ounces of contained gold (17.8 million tonnes of grade 3.62 g/t gold). On top of that is an indicated resource of 1.6 million ounces, plus an inferred resource of 1.86 million ounces.