Gold company Osisko Development has secured funding for ongoing detailed engineering and preconstruction activities at the Cariboo gold project, in British Columbia.
The $50-million delayed draw term loan from National Bank of Canada will enable Osisko to start development of a 1.2 km underground drift and to enhance design and engineering work ahead of the anticipated receipt of permits in the second quarter, said chairperson and CEO Sean Roosen.
“Completing this work is a significant step in further de-risking the project ahead of a construction decision by accessing the orebody and demonstrating the performance of the roadheader and ore sorter technologies, while we continue to progress toward sourcing a fully-funded solution for the project,” he added.
A feasibility study, released in early 2023, envisions a robust and scalable underground operation expected to produce about 1.87-million ounces of gold over a 12-year mine life.
Preproduction capital expenditure is estimated at C$137.3-million. Expansion capital is estimated C$451.1-million.