Osisko Development Closes Final Tranche of Non-brokered Private Placement of Subscription Receipts
April 21 2022 - 5:34PM
Osisko Development Corp. ("
Osisko Development" or
the "
Company") (TSXV: ODV) is pleased to announce
the successful closing of the final tranche of its
previously-announced non-brokered private placement, pursuant to
which an additional 512,980 subscription receipts of the Company
(the "
Subscription Receipts") were issued at a
price of US$3.50 per Subscription Receipt, for additional gross
proceeds of approximately US$1.795 million. The final tranche of
the private placement was for the purpose of accommodating
subscribers with pending subscriptions at the time of the closing
of the initial tranches.
The total size of the non-brokered
private placement offering is approximately US$119.3 million,
comprising:
- Tranche
1: US$84.8 million; closed on March 4,
2022
- Tranche
2: US$32.8 million; closed on March 29,
2022
- Tranche
3: US$1.795 million; closed on April 21,
2022
Each Subscription Receipt entitles the holder
thereof to receive one unit of the Company (each, a
"Unit"), upon the satisfaction of the Escrow
Release Condition (as defined below), and without payment of
additional consideration. Each Unit is 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
US$6.00 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
listing of the Common Shares on the New York Stock Exchange (the
"Escrow Release Condition"), which is contingent
upon the Company meeting the listing requirements of the New York
Stock Exchange ("NYSE") and may involve, among
other things, a consolidation of the Common Shares. If the Escrow
Release Condition is satisfied on or before June 15, 2022 (the
"Escrow Release Deadline"), the escrowed funds
will be released to the Company. If the Escrow Release Condition is
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 Condition, or (b) the Escrow Release Condition
is 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 are subject to a hold period expiring four
months and one day from the date of issue pursuant to applicable
Canadian securities laws. The offering remains subject to final
acceptance of the TSX Venture Exchange.
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.
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 |
|
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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 use of proceeds of the offering, the timing and
ability of Osisko Development to satisfy the customary listing
conditions of, and receive final acceptance of the offering from,
the TSX Venture Exchange (if at all), the timing and ability of
Osisko Development to complete the listing of the Common Shares on
the NYSE 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 listing of the Common Shares on the
NYSE and the 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 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.
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