Drilling at Cariboo Credit: Barkerville Gold Mines
Newly listed Osisko Development has received initial commitments for a non-brokered private placement of up it 1.3 million units, sold at $7.5 (or US$5.75) each, for gross proceeds of up to $10 million. Each unit includes one common share and half of a warrant.
The company started trading on the TSX Venture Exchange on Dec. 2 under the ticker ‘ODV’.
The proceeds are intended for development of the Cariboo gold project in B.C., and for the company’s other assets, as well as for corporate purposes. The offering may close in multiple tranches and may be increased by issuing additional units.
“We are excited to see the launch of Osisko Development has already garnered a great deal of enthusiasm in the investment community,” Sean Roosen, Osisko Development’s chair and CEO, said in a release. “This private placement contribution will help achieve our vision of building on the rich past of the Cariboo gold project that began in 1860 into the prominent mining district it is becoming with each new drill hole. With more than 83 km (50 miles) of mineralized trend identified and eight drills turning, this is a very unique project in the Canadian gold space.”
In October, Osisko Royalties announced the spin-out of Osisko Development.
The past-producing Cariboo project is going through permitting for a 4,750 t/d underground operation, with a feasibility study expected in the second half of 2021. The site includes an operational mill.
Measured and indicated resources at Cariboo stand at 21.4 million tonnes grading 4.6 g/t gold, for a total of 3.2 million oz., with additional inferred resources of 21.7 million tonnes at 3.9 g/t gold, totalling 2.7 million oz.
In addition to Cariboo, the company holds the San Antonio gold project in Mexico and the Coulon project and James Bay properties in Quebec.