Osisko Development acquires 6.25M Falco Resources units

Executive Summary

• Osisko Development Corp. acquired 6.25 million units of Falco Resources Ltd. for $2 million as part of a bought deal private placement.
• The acquisition increased Osisko's ownership stake in Falco to approximately 15.9% on a non-diluted basis and 17.1% on a partially diluted basis.
• The transaction triggered the filing of an Early Warning Report with Canadian securities regulators.

Key Details

• Transaction Structure: Osisko Development acquired 6,250,000 units of Falco Resources Ltd. indirectly through its wholly owned subsidiary, Barkerville Gold Mines Ltd. (BGM).
• Purchase Price: The units were purchased at 32 cents per unit, resulting in an aggregate purchase price of $2,000,000.
• Unit Composition: Each unit consisted of one common share of Falco and one-half of one common share purchase warrant of Falco.
• Pre-Offering Holdings: Immediately prior to the offering, Osisko (via BGM) held 48,675,240 common shares and 1.79 million warrants, representing approximately 16.0% of issued/outstanding shares (basic non-diluted) and 16.5% (partially diluted).
• Post-Offering Holdings: Immediately following the offering, Osisko (via BGM) holds 54,925,240 common shares and 4,915,000 warrants.
• Post-Offering Ownership Percentage:
  • Basic non-diluted basis: ~15.9%
  • Partially diluted basis (assuming full exercise of current warrants): ~17.1%
• Context: The purchase was made in connection with a bought deal private placement of 41,005,000 units completed by Falco.
• Regulatory Filing: An Early Warning Report was filed with applicable Canadian securities regulatory authorities and is available on SEDAR+ under Falco's issuer profile.
• Intent: The securities were acquired for investment purposes; Osisko reserves the right to acquire additional securities or dispose of existing holdings based on market conditions and Falco's prospects.

Notable Quotes

• "The securities were acquired by Osisko Development for investment purposes."