Osisko Development - CEO, Sean Roosen.
CEO, Sean Roosen.
Source: The Globe and Mail.
  • With significant interest from investors, Osisko Development (ODV) has increased its previously announced financing to C$80 million
  • According to an announcement dated December 2, the company had originally sought to raise $10 million by issuing roughly 1.3 million units at a price of $7.50 each
  • The company is now looking to raise up to $50 million, and has also signed a separate bought deal offering with Canaccord Genuity and National Bank Financial to raise a further $30 million
  • The proceeds will be used to fund the development of the Cariboo Project in British Columbia, along with other exploration assets
  • Osisko Development is currently steady at a price of $7.50 per share

With substantial interest from investors, Osisko Development (ODV) has increased its previously announced financing to C$80 million.

According to an announcement dated December 2, the Montreal-based project developer had originally sought to raise up to $10 million by issuing roughly 1.3 million units at a price of $7.50 each.

However, “in response to significant demand” Osisko Development is now seeking up to $50 million.

In addition to the upsized placement, Osisko Development has now signed a separate agreement with Canaccord Genuity and National Bank Financial – on behalf of a syndicate of underwriters – to raise a further $30 million.

On a “bought deal” basis, the underwriters have agreed to purchase 4 million units, also at a price of $7.50 each.

All of the units issued will be comprised of one common share in the company and one-half of a common share purchase warrant, exercisable at a price of $10.00 per share until December 1, 2023.

The proceeds raised will be used to fund the development of the company’s Cariboo Project in British Columbia, as well as its other exploration assets across Canada and Mexico.

“We are excited that Osisko Development has garnered such enthusiasm from the investment community in the early days,” said Sean Roosen, Chair and CEO of Osisko Development.

“The added size and scope of this private placement coupled with our equity investments and expected near-term cash flows, could form the equity foundation of continued development of the Cariboo Gold Project,” he added.

Osisko Development was launched in late November from the spin-out of assets held by Osisko Gold Royalties and the reverse-takeover of TSX Venture Exchange-listed Barolo Ventures.

Under the terms of the deal, Osisko Gold Royalties transferred the properties to Barolo Ventures along with a portfolio of securities valued at approximately $116 million.

In addition to the Cariboo Project, these properties include the San Antonio Gold Project in Mexico, Bonanza Ledge II in British Columbia, and the James Bay and Guerrero properties.

Osisko Development is currently steady at a price of $7.50 per share, as of 9:51am EST.

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