What's Happening?
Osisko Development, listed on NYSE and TSX-V, has successfully closed a $203 million private placement to fund its Cariboo gold project in Canada. The financing involved the sale of 99.1 million units at $2.05 each, with a brokered deal raising $120 million and a non-brokered placement generating $83 million. Delaware-based Double Zero Capital invested $75 million, acquiring 15% of Osisko's outstanding common shares. The funds will be used for the equity portion of the Cariboo project and general corporate purposes. The project, which is fully permitted, aims to produce 190,000 ounces of gold annually, with an updated feasibility study indicating a capital expenditure increase to C$1.41 billion.
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Why It's Important?
The successful fundraising by Osisko Development is crucial for advancing the Cariboo gold project, which promises significant gold production and economic benefits. The project is expected to contribute to Canada's mining sector, providing jobs and boosting local economies. The increased capital expenditure highlights the project's scale and potential impact. This development also reflects investor confidence in the gold market, driven by favorable feasibility study results and strategic financing arrangements.
What's Next?
Osisko Development will proceed with the construction of the Cariboo gold project, leveraging the funds raised and a $450 million project loan from Appian Capital Advisory. The company will focus on completing the project and achieving its production targets. Stakeholders will monitor the project's progress and its impact on the local economy and gold market dynamics.
