Falco Announces Early Warrant Exercise by Osisko Development Corp. and Additional Warrant Exercises Totaling Approximately $1.25 million
Falco exercises warrants early, but the $1.25m raise barely scratches the Horne 5 project’s $2.88b capital expenditure gap.
Falco Resources Ltd. announced that Osisko Development Corp. exercised 1,790,000 warrants at $0.35 per share, generating $626,500 in proceeds. This early exercise increases Osisko's ownership from 15.6% to 16.0%.
Additional proceeds of $622,438 were generated from the exercise of June 2024 warrants, including $61,600 from directors and officers. Total aggregate proceeds are approximately $1.25 million.
The proceeds are designated for the advancement of the Horne 5 Project, working capital, and general corporate purposes. The early exercise reflects Osisko's continued support for Falco and the Horne 5 Project.
Falco Resources Ltd. (FPC) raised $1.25 million, an amount immaterial relative to the $2.88 billion total life-of-mine CAPEX required for the Horne 5 project. This transaction serves as a routine follow-up to the June 17, 2026 Feasibility Study and the October 2025 private placement.
Osisko exercised options at $0.35, a price below the current $0.49 market price, signaling strategic confidence. However, this move does not materially alter the company's capital position or bridge the multi-billion dollar development gap. The news aligns with previous expectations, providing a minor sentiment boost without changing the fundamental capital requirements or regulatory timeline.
Falco Resources Ltd. is advancing the Horne 5 Gold Project, a 100%-owned polymetallic deposit located beneath Rouyn-Noranda, Quebec. The company’s 2026 Feasibility Study outlines a 15-year life-of-mine targeting average annual gold production of 220,300 payable ounces.
Under base-case economics assuming gold at US$3,600/oz, the project shows an after-tax NPV5% of $3.35 billion, an after-tax IRR of 28.2%, and a competitive AISC of US$782/oz. The project includes significant copper and zinc by-product credits, with metallurgical recoveries of 88.3% Au, 75.7% Cu, 72.8% Zn, and 74.2% Ag. Mining will utilize underground transverse long hole stoping at depths of 600-2,300m, with a 15,800 tpd processing plant.