Osisko Development Announces Agreement to Divest Non-Core San Antonio Gold Project

On November 24, 2025, Osisko Development Corp. ("Osisko" or "the Company") announced it has entered into an agreement to sell its non-core San Antonio Gold Project, located in Sonora, Mexico, to Axo Copper Corp. ("Axo").

The consideration for the sale includes: - An upfront payment of 15,305,536 common shares of Axo. - A series of contingent payments based on future project milestones: - 70% of a specific VAT refund, payable in cash. - US$2.0 million upon the filing of a feasibility study, payable in cash or shares at Axo's option. - US$2.0 million upon the first gold pour, payable in cash or shares at Osisko's option. - Additional shares to allow Osisko to maintain its 9.99% ownership interest in Axo following any equity financing greater than US$10 million by Axo.

The transaction is subject to TSX Venture Exchange acceptance and customary closing conditions. Osisko's Chairman and CEO, Sean Roosen, stated the sale is in line with the company's strategy of focusing on its priority development assets.

The divestment of the San Antonio Gold Project is a strategically sound, albeit financially non-material, event. To understand its context, we must review the company's progress throughout 2025.

• De-risking and Defining the Flagship (Q1-Q2 2025): The year began with a clear focus on the Cariboo Gold Project. The pivotal news was the April 28 announcement of an optimized Feasibility Study (FS) for Cariboo. This FS outlined robust economics with a C$943 million after-tax NPV5% and a 22.1% IRR at a US$2,400/oz gold price. This was a major de-risking event that clearly defined the path forward for the company's flagship asset. Positive ore sorting results announced on July 7 further validated and potentially improved upon the FS processing assumptions.

• Securing the Financing (Q3 2025): The third quarter was transformative. On July 21, Osisko announced a US$450 million credit facility with Appian Capital Advisory, a major mining-focused investment group. This debt facility forms the cornerstone of the construction financing package. This was followed by the closing of a massive US$203 million private placement on August 15, which included a US$75 million investment from a new strategic investor, Double Zero Capital LP. In October, the company raised an additional C$82.5 million. These events effectively secured the full funding package required for the C$881 million initial CAPEX of the Cariboo project.

• Operational Execution (Q3-Q4 2025): Throughout this period, the company released high-grade infill drill results from Cariboo (September 8, October 6), confirming the geological model and de-risking the mine plan. The Q3 results on November 10 confirmed a very strong cash position of C$401.4 million and steady progress on pre-construction activities, including underground development and drilling.

Within this context, the sale of the San Antonio project is a logical housekeeping measure. The project was on care and maintenance, consuming capital with an uncertain permitting path in Mexico. Divesting it, even for equity in a junior and contingent payments, removes a distraction and a minor cash drain. It allows management to dedicate 100% of its focus and resources to bringing Cariboo into production.

The immediate financial impact is minimal, as no significant cash is being received upfront. The value of the deal is tied to the future success of another junior company and the achievement of milestones. However, the strategic impact is positive. It demonstrates management's disciplined approach to portfolio management and its commitment to the successful development of its core asset. For shareholders, this reinforces the single-minded focus on building Canada's next major gold mine. Therefore, the news is routine but confirms a positive strategic direction.

Osisko Development is a Canadian-based gold development company focused on becoming an intermediate gold producer. Its flagship asset is the 100%-owned Cariboo Gold Project in central British Columbia. Cariboo is a permitted, feasibility-stage project poised for construction. The 2025 Feasibility Study outlines a 10-year mine life with average annual production of approximately 190,000 ounces of gold at an all-in sustaining cost (AISC) of US$1,157/oz. The company also holds the Tintic exploration project in Utah.