Mr. Sean Roosen reports
OSISKO DEVELOPMENT CLOSES FIRST TRANCHE OF PREVIOUSLY-ANNOUNCED NON-BROKERED PRIVATE PLACEMENT FOR GROSS PROCEEDS OF US$84.8 MILLION
Osisko Development Corp. has closed the first tranche of the company's previously announced non-brokered private placement, pursuant to which a total of 24,215,099 subscription receipts of the company were issued at a price of $3.50 (U.S.) per subscription receipt, for gross proceeds of approximately $84.8-million (U.S.). The company anticipates closing a second tranche of the offering in late March, 2022, pursuant to which an additional up to $25.5-million of subscription receipts may be issued to accommodate additional interest for the subscription receipts.
Each subscription receipt entitles the holder thereof to receive one unit of the company, upon the satisfaction of the escrow release conditions (as defined below), and without payment of additional consideration. Each unit comprises one common share of the company and one common share purchase warrant, with each warrant entitling the holder thereof to purchase one additional common share at a price of $6 (U.S.) per common share for a period of five years following the date of issue.
The gross proceeds from the sale of the subscription receipts will be held by TSX Trust Company, as subscription receipt agent, and released to the company upon the satisfaction of certain escrow release conditions, including the completion of the listing of the common shares on the New York Stock Exchange, which is contingent upon the company meeting the listing requirements of the New York Stock Exchange and may involve, among other things, a consolidation of the common shares. If the escrow release conditions are satisfied on or before June 15, 2022, the escrowed funds will be released to the company. If the escrow release conditions are not satisfied on or prior to the escrow release deadline or the company publicly announces that (a) it does not intend to satisfy the escrow release conditions, or (b) the escrow release conditions are incapable of being satisfied by the escrow release deadline, the escrowed proceeds, together with interest earned thereon, will be returned on a pro rata basis to the holders of the subscription receipts, and the subscription receipts will be cancelled and have no further force and effect.
The company intends to use the net proceeds of the offering to advance the development of the company's mineral assets and for general corporate purposes. All securities issued under the offering will be subject to a hold period expiring four months and one day from the date hereof. The offering is subject to final acceptance of the TSX Venture Exchange.
About Osisko Development Corp.
Osisko Development is uniquely positioned as a premiere gold development company in North America to advance the Cariboo gold project and other Canadian and Mexican properties, with the objective of becoming the next mid-tier gold producer. The Cariboo gold project, located in central British Columbia, Canada, is Osisko Development's flagship asset with measured and indicated resource of 21.44 million tonnes at 4.6 grams per tonne gold for a total of 3.2 million ounces of gold and inferred resource of 21.69 million tonnes at 3.9 g/t Au for a total of 2.7 million ounces of gold. The considerable exploration potential at depth and along strike distinguishes the Cariboo gold project relative to other development assets as does the historically low, all-in discovery costs of $19 (U.S.) per ounce. The Cariboo gold project is advancing through permitting as a 4,750-tonne-per-day underground operation with a feasibility study on track for completion in the first half of 2022. Osisko Development's project pipeline is complemented by potential near-term production targeted from the San Antonio gold project, located in Sonora, Mexico.
We seek Safe Harbor.
© 2022 Canjex Publishing Ltd. All rights reserved.