Osisko Development Announces US$125 Million Bought Deal Public Offering of Common Shares to Advance Mineral Resource-to-Reserve Conversion Toward Mine Plan Integration at the Cariboo Gold Project

The most recent news release, dated January 26, 2026, announces a bought deal public offering of 35,311,000 common shares at US$3.54 per share for gross proceeds of US$125 million. An over-allotment option for up to an additional 5,296,650 shares could bring total proceeds to approximately US$143.8 million. The net proceeds are intended to fund infill conversion drilling and at-depth exploration at the flagship Cariboo Gold Project in British Columbia, as well as for general working capital. The offering is underwritten by a syndicate including National Bank Capital Markets, RBC Capital Markets, and Cantor. This announcement was preceded by a trading halt on the TSX Venture Exchange.

The news is materially negative for the stock in the short term. The offering price of US$3.54 represents a steep 32.7% discount to the closing price of US$5.26 on January 23, 2026. This significant discount, combined with the substantial dilution (adding approximately 9.2% to the share count with the base offering), is a direct and negative impact on existing shareholder value. While the capital is earmarked for advancing the Cariboo project, which is a positive long-term strategic move, the market typically reacts negatively to such large, dilutive financings at a deep discount. The need for this raise, coming just months after a C$82.5 million private placement in October 2025 and a US$203 million financing in August 2025, underscores the company's ongoing and substantial capital requirements. It also raises questions about potential cost overruns or the sufficiency of previously arranged financing, including the US$450 million Appian debt facility.

Osisko Development Corp. is a North American gold development company focused on advancing its 100%-owned, permitted Cariboo Gold Project in central British Columbia, Canada. The project is the flagship asset, hosting a 2025 Feasibility Study outlining 2.07 million ounces of probable reserves (17.8 Mt at 3.62 g/t Au) and a 10-year mine life with average annual production of 190,000 ounces. The project is fully permitted under British Columbia's Mines Act and Environmental Management Act. The company also holds the Tintic Project (Utah, USA) and the San Antonio Gold Project (Mexico), the latter of which is under strategic review.