Osisko Development closes $82.5M private placement

Executive Summary

• Osisko Development Corp. has closed an oversubscribed private placement raising approximately $82.5 million in aggregate gross proceeds.
• The offering consists of 15,409,798 common shares, structured across listed issuer financing exemptions (flow-through and common shares) and a concurrent private placement.
• Proceeds are designated for eligible Canadian and B.C. exploration expenses (flow-through shares) and capital contributions for the construction of the Cariboo gold project (common shares).

Key Details

• Total Gross Proceeds: Approximately $82.5 million.
• Total Shares Issued: 15,409,798 common shares.
• Underwriters: National Bank Financial Inc., BMO Capital Markets, and RBC Capital Markets served as co-lead underwriters and co-bookrunners.
• Commission: Underwriters received a cash commission of 4.5% of the aggregate gross proceeds.
• Tranche 1: Listed Issuer Financing Exemption (Total Gross Proceeds: ~$50M)
  • National Flow-Through Shares: 2.99 million shares at $6.69 per share; Gross proceeds of $20,003,100.
  • B.C. Flow-Through Shares: 1,444,000 shares at $6.93 per share; Gross proceeds of $10,006,920.
  • Common Shares (LIFE): 4,182,000 shares at $4.78 per share; Gross proceeds of $19,989,960.
• Tranche 2: Concurrent Private Placement
  • Common Shares: 6,793,798 shares at $4.78 per share; Gross proceeds of $32,474,354.
• Use of Proceeds:
  • Flow-Through Shares: To incur eligible Canadian exploration expenses qualifying as flow-through mining expenditures (including B.C. specific expenditures). Qualifying expenditures must be incurred on or before Dec. 31, 2026, and renounced by Dec. 31, 2025.
  • Common Shares: To contribute to capital required for the construction of the Cariboo gold project and related preconstruction activities.
• Insider Participation:
  • Subscriber: Double Zero Capital LP (insider).
  • Shares: 2,447,775 common shares.
  • Price: $4.78 per share.
  • Gross Proceeds: $11,700,365.
  • Context: Subscription exercised via pre-emptive rights under an investor rights agreement dated Aug. 15, 2025. Considered a related-party transaction under MI 61-101; exemptions from formal valuation and minority shareholder approval were relied upon as the interested party transaction value is not more than 25% of market capitalization.
• Regulatory Conditions: The offering remains subject to final acceptance by the TSX Venture Exchange.
• Hold Period: Common shares issued under the concurrent private placement are subject to a statutory hold period of four months and one day.

Notable Quotes

• None provided in the text.