North American gold miner Osisko Development has closed a $203-million private placement to fund Cariboo, its 100%-owned, low-impact underground gold project in Canada.
The company offered 99.1-million units priced at $2.05 each. Each unit includes one common share and one-half of a warrant, with each full warrant allowing the purchase of an additional share at $2.56 until August 15, 2027.
The company plans to use the proceeds to fund capital requirements for its Cariboo gold project, and for general corporate purposes. Osisko said the proceeds, combined with a previously announced $450-million project loan from Appian Capital Advisory and other potential financing arrangements, will provide sufficient funding to construct the project.
A feasibility study on the Cariboo gold project, released earlier this year, “envisions a robust and scalable underground operation.” Total production is expected at 1.89 million ounces of gold over a 10-year mine life, or approximately 190 000 ounces a year. AISC is estimated at $1,157 per ounce.
Theodor Lisovoy, Managing Editor, Rough&Polished
