Osisko Development Reports Second Quarter 2025 Results

Executive Summary

• Osisko Development reported Q2 2025 results and disclosed a $943 million after‑tax NPV (base case) feasibility study for the Cariboo Gold Project, indicating strong economics and a 10‑year mine life.
• The company secured a senior secured project loan facility with Appian Capital Advisory for up to US$450 million; an initial US$100 million draw was completed.
• A “bought‑deal” private placement of 58.56 million units at US$2.05 per unit (gross proceeds US$120 million) plus a concurrent non‑brokered placement of ~36.6 million units for US$75 million were announced, targeting total gross proceeds of ≈US$195 million to fund Cariboo development.

Key Details

• Cash Position: $46.3 M cash & equivalents as of June 30 2025.
• Revenue: $6.9 M (Q2 2025) from sale of 1,393 oz gold at Tintic heap‑leach project.
• Feasibility Study (Cariboo Gold Project):
• After‑tax NPV5%: $943 M (base case), $2,066 M (spot case).
• IRR: 22.1 % (base) / 38.0 % (spot).
• Payback: 2.8 yr (base) / 1.6 yr (spot).
• Average annual production: 190,000 oz gold (10‑year life), 202,000 oz/yr first five years.
• Life‑of‑mine AISC: US$1,157/oz.
• Project Financing:
• Senior secured loan facility with Appian Capital Advisory – total commitment US$450 M; initial draw US$100 M used for infill drilling, pre‑construction, repayment of existing US$25 M term loan, and working capital.
• Remaining US$350 M available in up to four tranches over 36 months subject to milestones.
• Private Placement Offering (July 31 2025):
• 58,560,000 units @ US$2.05 per unit → US$120 M gross proceeds.
• Each unit = 1 common share + ½ warrant; warrants exercisable at US$2.56 for 24 months.
• Underwriters’ option for additional up to 2,440,000 units (total offering ≤ US$125 M).
• Concurrent Non‑Brokered Placement: ~36,600,000 units @ US$2.05 → ≈US$75 M gross proceeds.
• Total Expected Proceeds: ≈US$195 M (up to US$200 M if underwriters’ option exercised) earmarked for Cariboo construction and related capital needs.
• Operational Updates – Cariboo:
• Completed 1,172 m underground development drift; extracted ~7,400 t bulk sample.
• Ongoing 13,000 m infill drill program expected to finish Q4 2025.
• Tintic Project: Sold 1,393 oz gold in Q2 2025; Phase II regional drilling (2,405 m) completed with no significant intercepts.
• San Antonio Project: Remains in care & maintenance; board approved strategic review and plans to re‑submit two permit applications.
• Upcoming Milestones (Cariboo): Listed Q3–Q4 2025 construction and infrastructure items totaling ≈US$42 M remaining approved costs.

Notable Quotes

(No direct CEO quotes were provided in the release.)