Osisko Development (TSXV: ODV; NYSE: ODV) is raising $69 million (US$50 million) for its Cariboo gold project in central British Columbia and its Tintic precious metals project in central Utah. The company will issue up to about 27.8 million units at a price of $2.49.
Each unit consists of one common shares of Osisko Development and one share purchase warrant. Each warrant entitles the holder to purchase one common share at a price of $4.84 per warrant share before Oct. 2, 2019.
The private placement is co-lead by National Bank Financial, Cantor Fitzgerald Canada, and Eight Capital. The lead agents have also been granted an option to sell an additional approximately 4.2 million units (15%) at the offering price.
The Cariboo gold project, 100%-owned by Osisko and located in the historic Wells-Barkerville mining camp, was the topic of a feasibility study released in early 2023. It envisions an underground operation expected to produce about 1.9 million oz. over a 12-year mine life. It has an after-tax net present value (5% discount) of $502 million and a 20.7% internal rate of return at a gold price of US$1,700/oz. gold price. The first phase of production is expected in 2025.
Cariboo probable reserves, exclusive of measured and indicated resources, are 16.7 million tonnes grading 3.78% gold and containing 2.0 million oz. The M+I resource is 14.7 million tonnes at 3.33 g/t gold, containing almost 1.6 million oz., and the inferred resource is 15.5 million tonnes at 3.44 g/t gold, containing 1.7 million oz.
At the 100%-owned Tintic project, Osisko is concentrating on the Trixie underground gold-silver deposit. The measured and indicated resource estimate prepared in early 2023 is 245,000 tonnes grading 19.11 g/t gold (150,000 oz.) and 60.80 g/t silver (478,000 oz.) The inferred portion contains 202,000 tonnes at 7.80 g/t gold (51,000 oz.) and 48.55 g/t silver (315,000 oz.) Drilling is also underway on a nearby copper porphyry target.
Additional information on both projects is posted on www.OsiskoDev.com.
