Osisko Metals Announces Conversion of Glencore Canada's US$25 Million Convertible Debenture
Glencore converts C$25M debenture at a deep discount, eliminating debt but diluting shareholders by approximately 17%.
Osisko Metals Incorporated (OM) announced that Glencore Canada exercised its right to convert its full US$25 million senior secured convertible debenture into equity units, covering both the principal and US$7.6 million in accrued interest. The principal conversion occurred at C$0.40 per unit, resulting in the issuance of 88.96 million common shares and 44.48 million warrants with an exercise price of C$0.46. Glencore elected to cashlessly exercise all 44.48 million warrants, receiving 32.30 million additional shares.
The accrued interest of US$7.62 million was converted at C$1.58 per unit, based on the closing price on June 24, 2026. This portion of the conversion issued 6.86 million shares and 3.43 million warrants. Following the transaction, Glencore holds 128.13 million shares, representing 14.4% of the basic share count and 14.7% on a partially diluted basis. Prior to the conversion, Glencore held only the debenture and no equity position.
The conversion increased Osisko Metals’ total shares outstanding from 762.6 million to 890.7 million, a 16.8% increase.
Osisko Metals Incorporated (OM) has eliminated a US$25M liability plus accrued interest through a conversion that was marked at a C$90.6M fair value on the balance sheet. This move meaningfully relieves the company’s negative working capital, which stood at C$-9.1M at December 2025.
The transaction results in significant dilution for existing shareholders, who are diluted by approximately 16.8% on a basic basis. The conversion price on the principal was C$0.40, a deep discount to the prevailing market price of C$1.78, effectively rewarding Glencore for early-stage risk at shareholder expense.
Strategically, Glencore becomes a 14.4% stakeholder with offtake rights and a royalty, cementing its long-term interest in Gaspé Copper. The conversion removes uncertainty over a potential cash repayment or restructuring.
Given that the share price far exceeded the C$0.40 conversion trigger, the market widely anticipated this action. The formal execution and removal of the liability are positive events that improve the company’s financial flexibility and reduce risk.
Osisko Metals Incorporated is a Canadian exploration and development company focused on the Gaspé Copper Project in Quebec, which is one of North America’s largest undeveloped copper-molybdenum deposits. The project is a brownfield porphyry/skarn system with a 2026 pit-constrained Measured and Indicated resource of 1.83 Bt @ 0.32% CuEq (10.77 B lbs Cu) plus 239 Mt @ 0.46% CuEq Inferred.
Plans envision a 160,000-200,000 tpd operation producing more than 140 kt of copper annually. A preliminary economic assessment is due late 2026, with a feasibility study targeted for early 2028. The company acquired the property from Glencore in 2023 and maintains a strategic partnership with Glencore that includes offtake, royalty, and equity arrangements. Other assets include non-core gold properties at Canadian Malartic, Windfall, and Marban.