Osisko Development Corp. ("
Osisko Development" or
the "
Company") (TSXV: ODV) is pleased to announce
that it has entered into a letter of engagement with Eight Capital,
under which Eight Capital, acting as co-lead underwriter and joint
bookrunner with BMO Nesbitt Burns Inc. and National Bank Financial
Inc., and on behalf of a syndicate of underwriters (collectively,
the "
Underwriters"), has agreed to purchase, on a
"bought deal" private placement basis, an aggregate 9,000,000
subscription receipts of the Company (the "
Subscription
Receipts") and/or units of the Company (the
"
Units" and, together with the Subscription
Receipts, the "
Offered Securities") at a price of
$4.45 per Offered Security (the "
Issue Price"),
for aggregate gross proceeds of $40,050,000 (the
"
Offering").
Each Unit will be comprised of one common share
of the Company (each, a "Common Share") and one
common share purchase warrant (each, a "Warrant"),
with each Warrant entitling the holder thereof to purchase one
additional Common Share at a price of $7.60 per Common Share for a
period of 60 months following the closing date of the Offering.
Each Subscription Receipt will entitle the
holder thereof to receive, upon the satisfaction of the Escrow
Release Condition (as defined below), and without payment of
additional consideration, one Unit.
The Company has granted the Underwriters an
option, exercisable in whole or in part up to 48 hours prior to the
closing of the Offering, to purchase up to an additional aggregate
amount of 1,350,000 Subscription Receipts and/or Units at the Issue
Price, for additional gross proceeds of up to $6,007,500.
The gross proceeds from the sale of the
Subscription Receipts, net of expenses of the Underwriters and 50%
of the commissions payable to the Underwriters in respect of the
Subscription Receipts, will be placed into escrow and will be
released immediately prior to the completion of the Company's
proposed acquisition of Tintic Consolidated Metals LLC
("Tintic"), as described in the press release of
the Company dated January 25, 2022 (the "Tintic
Acquisition") (the "Escrow Release
Condition"). If the Escrow Release Condition is not
satisfied prior to the date that is 90 days from the closing of the
Offering, the escrowed proceeds of the Offering will be returned to
the holders of the Subscription Receipts.
The Company intends to use the net proceeds of
the Offering to advance the development of the Company's mineral
assets, including the Cariboo Gold Project, the San Antonio Gold
Project and properties held by Tintic assuming the completion of
the Tintic Acquisition, and for general corporate purposes.
The closing date of the Offering is expected to
occur on or about March 2, 2022, and is subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals, including the conditional approval from the
TSX Venture Exchange. The securities issued pursuant to the
Offering will be subject to applicable hold periods, including the
typical four month hold period from the date of closing of the
Offering.
This news release does not constitute an
offer to sell or a solicitation of an offer to buy any securities
in the United States or any other jurisdiction. No securities may
be offered or sold in the United States or in any other
jurisdiction in which such offer or sale would be unlawful absent
registration under the U.S. Securities Act of 1933, as amended, or
an exemption therefrom or qualification under the securities laws
of such other jurisdiction or an exemption therefrom.
About Osisko Development
Corp.
Osisko Development Corp. is uniquely positioned
as a premier 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 g/t Au 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 US$19 per ounce. The Cariboo Gold Project is advancing
through permitting as a 4,750 tonnes 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 and early exploration stage
properties including the Coulon Project and James Bay Properties
located in Québec, Canada as well as the Guerrero Properties
located in Guerrero, Mexico.
For further information about Osisko Development Corp.,
please contact: |
|
|
Sean Roosen, CEOTelephone: (514) 940-0685Email:
sroosen@osiskodev.com |
Jean Francois Lemonde, VP Investor RelationsTelephone: (514)
299-4926Email: jflemonde@osiskodev.com |
|
|
Follow us on our Social Media
Platforms:Facebook:https://www.facebook.com/osiskodevLinked
In:http://www.linkedin.com/company/osisko-devYoutube:https://www.youtube.com/channel/UC-1LPPhZ9WZnOuWsf6mRWhwTwitter:https://twitter.com/OsiskoDev |
Cautionary Note Regarding
Forward-looking Information
Certain statements contained in this news
release may be deemed "forward‐looking statements" within the
meaning of applicable Canadian securities laws. These
forward‐looking statements, by their nature, require Osisko
Development to make certain assumptions and necessarily involve
known and unknown risks and uncertainties that could cause actual
results to differ materially from those expressed or implied in
these forward‐looking statements. Forward‐looking statements are
not guarantees of performance. Words such as "may", "will",
"would", "could", "expect", "believe", "plan", "anticipate",
"intend", "estimate", "continue", or the negative or comparable
terminology, as well as terms usually used in the future and the
conditional, are intended to identify forward‐looking statements.
Information contained in forward‐looking statements, including with
respect to the expected size of the Offering, the use of proceeds
of the Offering, the jurisdictions in which the Offered Securities
will be offered or sold, the number of Offered Securities offered
or sold, the ability of Osisko Development to close the Offering on
terms announced (if at all), the timing and ability of Osisko
Development to satisfy the customary listing conditions of the TSX
Venture Exchange (if at all), the timing and ability of Osisko
Development to complete the Tintic Acquisition and satisfy the
Escrow Release Condition (if at all), the timing and ability of
Osisko Development to obtain all necessary approvals in respect of
the Offering and the Tintic Acquisition, future production of
mines, is based upon certain material assumptions that were applied
in drawing a conclusion or making a forecast or projection,
including management's perceptions of historical trends, current
conditions and expected future developments, public disclosure from
operators of the relevant mines, as well as other considerations
that are believed to be appropriate in the circumstances. Osisko
Development considers its assumptions to be reasonable based on
information currently available, but cautions the reader that their
assumptions regarding future events, many of which are beyond the
control of Osisko Development, may ultimately prove to be incorrect
since they are subject to risks and uncertainties that affect
Osisko Development, and its business. For additional information
with respect to these and other factors and assumptions underlying
the forward-looking statements made in this news release concerning
Osisko Development, see: (i) the news release announcing the Tintic
Acquisition dated January 25, 2022; and (ii) the filing statement
dated November 20, 2020, both of which are available electronically
under Osisko Development's issuer profile on SEDAR (www.sedar.com).
The forward‐looking statements set forth herein concerning Osisko
Development reflect management's expectations as at the date of
this news release and are subject to change after such date. Osisko
Development disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, other than as required by
law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release. No stock exchange,
securities commission or other regulatory authority has approved or
disapproved the information contained herein.
Osisko Development (TSXV:ODV)
Historical Stock Chart
From Jun 2024 to Jul 2024
Osisko Development (TSXV:ODV)
Historical Stock Chart
From Jul 2023 to Jul 2024