Osisko Development Announces Closings of Additional US$75 Million Aggregate Principal Amount of 4.125% Convertible Senior Notes Bringing Total Offering to US$300 Million

Osisko Development Corp. announced the closing of an additional US$75.0 million in 4.125% convertible senior notes due 2031 on May 29, 2026. This brings the total gross proceeds from the offering program to US$300.0 million. The transaction was structured in three tranches: a US$225.0 million base offering (closed May 26), a US$25.0 million full exercise of the initial purchasers' option, and a US$50.0 million concurrent private placement. Approximately US$290.0 million in net proceeds will fund the Cariboo Gold Project and general corporate purposes. The company allocated US$40.2 million to purchase cash-settled capped calls, which increases the effective conversion premium from 25% to 100%, mitigating potential equity dilution up to approximately US$5.88 per share. Double Zero Capital, LP acquired the US$50.0 million private placement tranche, raising its post-transaction ownership to ~15.93% non-diluted. The notes carry a 4.125% coupon, mature in 2031, and feature a covenant-light structure with no project-level security or restrictive financial covenants.

Historical news progression shows a clear capital-raising trajectory: following a positive feasibility study in June 2025 and a US$450 million senior secured facility with Appian in July 2025, the company executed multiple equity raises (Aug-Oct 2025) to fund pre-construction. In early 2026, the company sold the San Antonio project, resumed site activities post-safety incident, and announced the US$275 million convertible note offering in May 2026. The June 1 closing of the additional $75 million simply finalizes the previously announced capital raise.

The closing of the additional US$75 million is a routine follow-up to the May 21 pricing and May 26 base closing. It is fully in line with previous expectations and the original offering structure. The market had already priced in the dilution risk associated with the convertible notes, evidenced by the stock's decline from ~$4.00 on May 20 to ~$3.86 by May 29. The capped call mechanics are a standard mitigation tool and do not constitute a material positive surprise. While the transaction bolsters the balance sheet with ~$250 million in net proceeds available for project advancement, it does not change the fundamental risk/reward profile or the company's near-term capital needs. The news is incremental and expected, providing necessary liquidity without altering the development timeline or project economics.

Osisko Development Corp. is a Canadian mining company focused on the development of the Cariboo Gold Project, a 100%-owned, fully permitted underground gold mine in central British Columbia. The project features a feasibility study with a $943 million after-tax NPV (5%) and a 22.1% IRR, projecting 190,000 ounces of gold per year over a 10-year mine life with an AISC of $1,157/oz. The company also operates the Tintic Project in Utah, which is currently in small-scale heap leach production, and previously held the San Antonio Gold Project in Mexico, which was sold to Axo Copper Corp. in early 2026. Management is actively advancing pre-construction activities, including underground development, water treatment plant upgrades, and infrastructure construction.