Osisko Metals arranges $32.48-million private placement

Executive Summary

• Osisko Metals Inc. announced a non-brokered private placement of approximately 67.7 million common shares at $0.48 per share, raising gross proceeds of approximately $32.48 million.
• The financing includes significant participation from strategic investors, notably Hudbay Minerals Inc. ($14 million), Agnico Eagle Mines Ltd. ($12.48 million), and Franco-Nevada Corp. ($2 million).
• Proceeds are designated to advance the Gaspe copper project (drilling, permitting, technical studies) and for general corporate purposes, with an expected closing date of December 16, 2025.

Key Details

• Transaction Structure: Non-brokered private placement of common shares.
• Offering Price: $0.48 per common share.
• Total Gross Proceeds: Approximately $32.48 million.
• Total Shares Issued: Approximately 67,666,666 common shares.
• Investor Breakdown:
  • Hudbay Minerals Inc.: Subscribed for 29,166,666 shares for gross proceeds of $14 million.
  • Agnico Eagle Mines Ltd.: Subscribed for 26,000,000 shares for gross proceeds of $12.48 million (pursuant to existing participation rights).
  • Franco-Nevada Corp.: Subscribed for 4,166,667 shares for gross proceeds of $2 million.
  • Strategic Institutional Investor: Subscribed for 8,333,333 shares for gross proceeds of $4 million.
• Post-Placement Ownership (Pre-dilution):
  • Hudbay Minerals: Expected to hold ~4.3% of issued and outstanding shares.
  • Agnico Eagle: Expected to hold ~12.5% of shares (calculated on a partially diluted basis).
• Investor Rights Agreement: Osisko and Hudbay agreed to an investor rights agreement granting Hudbay top-up rights and the right to participate in future offerings if ownership exceeds 9.9%, plus potential board representation subject to minimum ownership thresholds.
• Use of Proceeds: Advancement of the Gaspe copper project (including drilling, permitting, and technical studies) and general corporate purposes.
• Closing Conditions: Subject to negotiation of definitive agreements, customary closing conditions, and conditional approval of the Toronto Stock Exchange (TSX).
• Expected Closing Date: On or about December 16, 2025.
• Glencore Participation: The final size of the placement is contingent on contractual participation rights granted to Glencore Canada Corp.

Notable Quotes

• "We are pleased to welcome Hudbay Minerals as a new significant shareholder of Osisko Metals. We also appreciate the continued participation of Agnico Eagle and two of our existing principal and strategic shareholders. We view the participation in the private placement by these investors as support for the potential of the Gaspe copper project and we look forward to continued support from these shareholders as we advance our project." — Robert Wares, Chief Executive Officer