Osisko Development (NYSE: ODV, TSXV: ODV) has entered into a credit agreement with funds advised by Appian Capital Advisory for a senior secured project loan credit facility totaling US$450 million to develop and construct its permitted, 100%-owned Cariboo gold project in central British Columbia.
The company will use the credit facility to access strategic capital and gain enhanced financial flexibility as it advances Cariboo through the next phase of pre-construction and early works milestones toward construction readiness. The facility features two tranches, which align with the project’s planned development timeline.
Osisko completed an initial draw of US$100 million and plans to (i) undertake a 13,000-metre infill drill campaign to further de-risk project mine planning assumptions; (ii) fund pre-construction and construction activities for Cariboo’s development; (iii) repay its existing outstanding US$25 million term loan with National Bank of Canada, due in October 2025; and (iv) support the project’s general working capital requirements.
Sean Roosen, Chairman and CEO of Osisko, said: “We are delighted to welcome Appian as a new cornerstone investor, which is a significant endorsement of the Cariboo gold project and a major milestone in advancing it towards a construction decision. Having recently completed an updated feasibility study for the project, the US$450 million facility represents a key financing commitment and allows us to maintain momentum towards a formal investment decision. The facility is structured to provide us with financial flexibility as we continue to push forward on pre-construction and construction activities and seek to fully fund the project for construction. Appian is the leading investor in the mining space and has a successful track record of identifying and supporting the development of high-quality assets into production—we are encouraged by their confidence in our team and vision to develop the next major Canadian gold mine.”
Michael W. Scherb, founder and CEO of Appian, commented, “The Cariboo gold project perfectly aligns with Appian’s disciplined, technically driven investment strategy. It is situated in a stable jurisdiction, boasts a robust existing minerals base with clear upside potential, and is being led by an experienced management team. The project also holds permits that will enable near-term progress to production. This transaction showcases the strength of Appian’s dedicated credit and royalties offering, including the added value that our market-leading technical team can provide project owners. We look forward to working constructively with the Osisko team to help advance the project.”
For more information on Appian, please visit www.AppianCapitalAdvisory.com. For further information on Osisko, visit www.OsiskoDev.com.
