Canadian Mining Journal

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GOLD: Osisko Mining raising $150M in bought deal



Drill core from Osisko Mining’s Windfall gold project Credit: Major Drilling

Drill core from Osisko Mining’s Windfall gold project Credit: Major Drilling

TORONTO – On the back of a gold price rally, Osisko Mining has announced a $150-million bought deal private placement, one of the largest such raises in recent years.

The company has entered into an agreement with Canaccord Genuity and Eight Capital as co-lead underwriters of a syndicate, which has agreed to purchase, on a bought-deal private placement basis, 41.1 million units of the company at $3.65 each for gross proceeds of $150 million.

Each unit consists of one share and half of a warrant. The underwriters will also have the option to purchase up to an additional 7.4 million units for potential proceeds of up to $27 million up to 48 hours prior to closing, which is expected around Jun. 23. Net proceeds of the offering are intended for the company’s mineral assets in Quebec, as well as for working capital and corporate purposes.

Osisko Mining’s principal asset is its wholly owned Windfall Lake gold project, between Val-d’Or and Chibougamau. The company also holds over 2,700 sq. km of ground in the surrounding Urban Barry and Quevillon areas. In February, the company announced an updated resource for Windfall Lake, reporting indicated resources of 4.1 million tonnes at 9.1 g/t gold with a further 14.5 million inferred tonnes at 8.4 g/t for a total of 1.2 million indicated oz. and 3.9 million inferred oz.

An underground bulk sample extracted from the project at the end of last year came in ahead of company expectations, with head grades averaging 17.8 g/t gold.

This year, Osisko plans to drill 250,000 metres at Windfall, which will include both infill and expansion drilling as well as testing of regional targets.

For more information, visit www.OsiskoMining.com.