- Osisko Development (ODV) has raised C$68.6 million in a private placement to advance its gold projects in Canada and Mexico
- The company issued just over 9.34 million units at a price of $7.50 each, consisting of one common share and one-half of a share purchase warrant
- Each whole warrant will be exercisable at a price of $10.00 per share until December 1, 2023
- The company has raised more than $200 million since October last year to fund its activities
- Osisko Development is currently down 0.71 per cent to $8.34 per share
Osisko Development (ODV) has raised C$68.6 million in a private placement to advance its gold projects in Canada and Mexico.
Under the terms of the offering, which was announced on December 3 last year and upsized on December 8, the Montreal-based company issued just over 9.34 million units at a price of $7.50 each.
These warrants are comprised of one common share in Osisko Development and one-half of a common share purchase warrant. Each whole warrant will be exercisable at a price of $10.00 per share until December 1, 2023.
Sean Roosen, Chair and CEO of Osisko Development, subscribed for 13,000 units. With the placement now complete, he holds 106,333 common shares, 53,166 warrants and 267,400 options, representing approximately 0.1 per cent of the company or 0.3 per cent on a partially diluted basis.
A second tranche of the offering is expected to close in late January for up to an additional $12 million.
According to today’s announcement, the proceeds will be used to further develop the company’s Cariboo Gold Project in British Columbia and advance the San Antonio Project in Sonora, Mexico, towards production.
“We are thrilled to have raised over $200 million since October 2020 to capitalise Osisko Development. The proceeds that we’ve raised, coupled with our equity investments and expected near-term cash flows, forms the foundation of continued development of the Cariboo Gold Project,” Sean said.
“We thank our partners and the investment community for your support over the past couple of months to put Osisko Development in position to succeed out of the gate,” he added.
Osisko Development is currently down 0.71 per cent to $8.34 per share at 10:52am EST.
