Osisko Metals Announces $32.5 Million Private Placement with Strategic Investors

On December 3, 2025, Osisko Metals announced it has entered into an agreement for a C$32.5 million private placement. The financing consists of 67,666,666 common shares at a price of C$0.48 per share. The placement includes significant participation from strategic investors: Hudbay Minerals Inc., Agnico Eagle Mines Limited, Franco-Nevada Corporation, and another strategic institutional investor. The use of proceeds is designated for advancing the Gaspé Copper project and for general corporate purposes. Concurrently, Osisko Metals has granted Hudbay Minerals an investor rights agreement, providing top-up rights and the right to board representation if its ownership reaches 9.9%, subject to certain conditions.

This financing is a game-changing event for Osisko Metals, addressing the company's most critical risk while providing immense validation for its flagship project.

A chronological review of the company's news provides essential context: - December 2024: The company undertook a massive C$107.4 million financing and a complete management overhaul. This reset the company's strategy, focusing squarely on advancing the recently acquired Gaspé Copper project. - February 2025: The company announced a 110,000-metre drill program for 2025, signaling its aggressive exploration and definition plans. - April - November 2025: Osisko released a steady stream of drill results from Gaspé Copper. These results consistently demonstrated very long, continuous intercepts of low-grade copper mineralization (typically 0.25%-0.45% CuEq over hundreds of metres), confirming the presence of a massive, bulk-tonnage porphyry system. The drilling successfully expanded the known mineralization at depth and to the south, meeting the stated objectives of the program. - Financials (Q3 2025): The interim financial statements filed on November 11, 2025, revealed a critical issue. The company's cash position had dwindled from over C$101 million at the start of the year to just C$6.2 million by September 30, 2025. With a high burn rate driven by the extensive drill program, the company was on the verge of running out of capital. Another financing was not just expected, it was essential for survival.

The December 3, 2025 financing addresses this critical need for capital, but its true impact lies in the details: - Strategic Validation: The participation of Hudbay Minerals (a major copper producer), Agnico Eagle (a senior gold producer), and Franco-Nevada (the world's leading royalty company) is a powerful endorsement. These sophisticated mining companies have undoubtedly conducted extensive due diligence, and their investment validates the technical merits and economic potential of the Gaspé Copper project. This "smart money" investment significantly de-risks the project in the eyes of the market. - Favourable Terms: The financing was priced at C$0.48, which was the market closing price the day prior, indicating no discount was required to attract these investors. Crucially, the placement consists of common shares only, with no warrants attached. This is a strong sign of investor confidence and avoids the future dilution and price overhang associated with a warrant-heavy structure. This is a stark contrast to the December 2024 financing which included warrants. - Potential Partnership/Takeover: The investor rights agreement with Hudbay Minerals signals a deeper strategic relationship. It positions Hudbay as a logical potential partner for project development or even a future acquirer, providing a clear strategic path forward.

In summary, this news is far more than a simple financing. It solves a critical balance sheet problem, validates a year's worth of exploration success with capital from industry leaders, and establishes a strategic relationship with a potential future partner. It fundamentally improves the company's risk profile and credibility.

Osisko Metals Incorporated is a Canadian exploration and development company focused on critical metals. Its flagship asset is the 100%-owned Gaspé Copper Project located in Québec, a past-producing mine acquired from Glencore in July 2023. The project is considered the largest undeveloped copper resource in Eastern North America. The company is currently executing a large-scale drill program aimed at converting and expanding the significant existing mineral resource. Osisko also holds an interest in the Pine Point Project, a past-producing zinc mining camp in the Northwest Territories, through a joint venture.