TSX-listed gold project developer Osisko Development has completed a previously announced nonbrokered private placement of 9.34-million units at a price of C$7.50 apiece for aggregate gross proceeds of about C$68.6-million.
The proceeds will be used to further develop the Cariboo gold project, in British Columbia; to advance the San Antonio gold project, in Mexico, towards production; and for general corporate purposes.
Each unit consists of one common share and one-half of one common share purchase warrant, with each whole warrant entitling the holder thereof to acquire one common share at a price of C$10 apiece on or prior to December 1, 2023.
Osisko Development chairperson and CEO Sean Roosen says the proceeds raised, coupled with the company’s equity investments and expected near-term cash flows, form the foundation of continued development of the Cariboo gold project.
The company intends to close a second tranche of the offering, up to about C$12-million to accommodate additional interest for the units on or about January 29.