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MONTRÉAL, Dec. 30, 2020 /CNW/ - Osisko Development Corp. ("Osisko Development" or the "Corporation") (TSX-V: ODV) is pleased to announce the successful completion of its previously-announced "bought deal" brokered private placement of 5,367,050 units of the Corporation (the "Units") at a price of CDN$7.50 per Unit for aggregate gross proceeds of approximately CDN$40.3 million, including the exercise in full of the underwriters' option (the "Offering"). Each Unit consists of one common share of the Corporation and one-half of one common share purchase warrant of the Corporation, with each whole warrant entitling the holder thereof to acquire one common share of the Corporation at a price of CDN$10.00 per share on or prior to December 1, 2023.
The net proceeds of the Offering will be used to further develop the Cariboo Gold Project and other exploration assets of Osisko Development, and for general corporate purposes.
The Offering was co-led by Canaccord Genuity Corp. and National Bank Financial Inc., on behalf of a syndicate of underwriters that included Eight Capital, RBC Dominion Securities Inc., CIBC World Markets Inc., Desjardins Securities Inc., PI Financial Corp., Raymond James Ltd., Scotia Capital Inc., Haywood Securities Inc., Industrial Alliance Securities Inc., and Paradigm Capital Inc. In consideration for their services, the Corporation paid the underwriters a cash commission equal to 5.0% of the gross proceeds of the Offering.
All securities issued under the Offering will be subject to a hold period expiring four months and one day from the date hereof. The Offering is subject to final acceptance of the TSX Venture Exchange.
Osisko Development is also pleased to announce that it expects to close its previously-announced non-brokered private placement of Units on or about January 8, 2020.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States or any other jurisdiction. No securities may be offered or sold in the United States or in any other jurisdiction in which such offer or sale would be unlawful prior to registration under U.S. Securities Act of 1933 or an exemption therefrom or qualification under the securities laws of such other jurisdiction or an exemption therefrom.
About Osisko Development Corp.
Osisko Development Corp. is well-capitalized and uniquely positioned as a premier gold development company in North America to advance the Cariboo Gold Project and other Canadian and Mexican properties, with the objective of becoming the next mid-tier gold producer. The Cariboo Gold Project, located in central British Columbia, is Osisko Development's flagship asset with measured and indicated resource of 21.44 Mt at 4.6 Au g/t for a total of 3.2 million ounces of gold and inferred resource of 21.69 Mt at 3.9 Au g/t for a total of 2.7 million ounces of gold. The considerable exploration potential at depth and along strike distinguishes the Cariboo Gold Project relative to other development assets as does the historically low, all-in discovery costs of US $19 per ounce. The Cariboo Gold Project is advancing through permitting as a 4,750 tonnes per day underground operation with a feasibility study on track for completion in the second half of 2021. Osisko Development's project pipeline is complemented by potential near-term production targeted from the San Antonio gold project, located in Sonora Mexico and early exploration stage properties including the Coulon Project and James Bay Properties located in Québec as well as the Guerrero Properties located in Mexico.
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Cautionary Note Regarding Forward-Looking Information
Certain statements contained in this news release may be deemed "forward?looking statements" within the meaning of applicable Canadian securities laws. The information in this news release about the use of proceeds of the Offering, the timing and ability of the Corporation, if at all, to obtain final approval of the Offering from the TSX Venture Exchange and any other information herein that is not a historical fact may be "forward-looking statements". These forward?looking statements, by their nature, require Osisko Development to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward?looking statements. Forward?looking statements are not guarantees of performance. Words such as "may", "will", "would", "could", "expect", "believe", "plan", "anticipate", "intend", "estimate", "continue", or the negative or comparable terminology, as well as terms usually used in the future and the conditional, are intended to identify forward?looking statements. Information contained in forward?looking statements, including with respect to future production of mines, is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, public disclosure from operators of the relevant mines, as well as other considerations that are believed to be appropriate in the circumstances. Osisko Development considers its assumptions to be reasonable based on information currently available, but cautions the reader that their assumptions regarding future events, many of which are beyond the control of Osisko Development, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect Osisko Development, and its business.
For additional information with respect to these and other factors and assumptions underlying the forward?looking statements made in this news release concerning Osisko Development, see the Filing Statement available electronically under Osisko Development's issuer profile on SEDAR (www.sedar.com). The forward?looking statements set forth herein concerning Osisko Development reflect management's expectations as at the date of this news release and are subject to change after such date. Osisko Development disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE Osisko Development Corp.
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