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Osisko Development Closes US$57.5 Million Marketed Private Placement of Units

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Osisko Development (NYSE: ODV) has successfully closed a private placement offering of 31,946,366 units at US$1.80 per unit, raising approximately US$57.5 million. The offering included a lead order from Condire Investors, resulting in an 8.8% stake in the company. Each unit consists of one common share and one purchase warrant exercisable at US$3.00 until October 1, 2029. The proceeds will fund the advancement of Cariboo and Tintic projects, partially repay existing credit facility, and support general corporate purposes. The company expects to complete an updated optimized feasibility study for the Cariboo Gold Project in Q2 2025.

Osisko Development (NYSE: ODV) ha concluso con successo un'offerta di collocamento privato di 31.946.366 unità a 1,80 US$ per unità, raccogliendo circa 57,5 milioni di US$. L'offerta ha incluso un ordine principale da Condire Investors, risultando in una partecipazione del 8,8% nell'azienda. Ogni unità consiste in un'azione comune e un warrant d'acquisto esercitabile a 3,00 US$ fino al 1° ottobre 2029. I proventi saranno utilizzati per finanziare l'avanzamento dei progetti Cariboo e Tintic, rimborsare parzialmente la linea di credito esistente e supportare scopi aziendali generali. L'azienda prevede di completare uno studio di fattibilità aggiornato e ottimizzato per il Progetto Cariboo Gold nel secondo trimestre del 2025.

Osisko Development (NYSE: ODV) ha cerrado con éxito una oferta de colocación privada de 31.946.366 unidades a 1.80 US$ por unidad, recaudando aproximadamente 57.5 millones de US$. La oferta incluyó una orden principal de Condire Investors, resultando en una participación del 8.8% en la empresa. Cada unidad consta de una acción común y una garantía de compra ejercitable a 3.00 US$ hasta el 1 de octubre de 2029. Los ingresos se utilizarán para financiar el avance de los proyectos Cariboo y Tintic, reembolsar parcialmente la línea de crédito existente y apoyar propósitos corporativos generales. La empresa espera completar un estudio de viabilidad optimizado y actualizado para el Proyecto Cariboo Gold en el segundo trimestre de 2025.

Osisko Development (NYSE: ODV)1.80 달러 per 단위로 31,946,366 개의 유닛에 대한 사모 배치 공모를 성공적으로 완료하여 약 5,750 만 달러를 조달했습니다. 이 공모에는 Condire Investors의 주요 주문이 포함되어 있으며, 이로 인해 회사의 8.8% 지분을 확보하게 되었습니다. 각 유닛은 하나의 보통주와 2029년 10월 1일까지 3.00 달러에 행사 가능한 구매 보증서로 구성됩니다. 조달된 자금은 Cariboo 및 Tintic 프로젝트의 발전, 기존 신용 시설의 부분적인 상환 및 일반 기업 목적을 지원하는 데 사용될 것입니다. 이 회사는 2025년 2분기에 Cariboo Gold 프로젝트에 대한 업데이트된 최적화된 타당성 조사를 완료할 것으로 예상하고 있습니다.

Osisko Development (NYSE: ODV) a réussi à clore une offre de placement privé de 31 946 366 unités à 1,80 US$ par unité, levant environ 57,5 millions de US$. L'offre incluait un ordre principal de Condire Investors, ce qui a conduit à une participation de 8,8% dans la société. Chaque unité se compose d'une action ordinaire et d'un bon de souscription exerçable à 3,00 US$ jusqu'au 1er octobre 2029. Les produits seront utilisés pour financer l'avancement des projets Cariboo et Tintic, rembourser partiellement la facilité de crédit existante et soutenir des objectifs d'entreprise généraux. La société s'attend à finaliser une étude de faisabilité mise à jour et optimisée pour le projet Cariboo Gold au deuxième trimestre 2025.

Osisko Development (NYSE: ODV) hat erfolgreich eine Privatplatzierung von 31.946.366 Einheiten zu 1,80 US$ pro Einheit abgeschlossen und dabei etwa 57,5 Millionen US$ gesammelt. Die Platzierung beinhaltete eine Hauptbestellung von Condire Investors, wodurch ein Anteil von 8,8% am Unternehmen resultierte. Jede Einheit besteht aus einer Stammaktie und einem Kaufoptionsschein, der bis zum 1. Oktober 2029 zu 3,00 US$ ausgeübt werden kann. Die Einnahmen dienen der Finanzierung der Fortentwicklung der Projekte Cariboo und Tintic, der teilweisen Rückzahlung der bestehenden Kreditfazilität sowie der Unterstützung allgemeiner Unternehmenszwecke. Das Unternehmen erwartet, im zweiten Quartal 2025 eine aktualisierte, optimierte Machbarkeitsstudie für das Cariboo-Gold-Projekt abzuschließen.

Positive
  • Raised US$57.5 million through oversubscribed private placement
  • Strategic investment from Condire Investors securing 8.8% stake
  • Recently closed additional US$34.5 million non-brokered offering
  • Strengthened balance sheet for project development
  • Secured institutional investor backing for Cariboo Gold Project
Negative
  • Potential shareholder dilution from unit offering
  • Warrant exercise could lead to further dilution
  • Existing credit facility requires partial repayment

Insights

This US$57.5 million private placement, combined with the recent US$34.5 million non-brokered offering, significantly strengthens ODV's financial position. The oversubscribed offering at US$1.80 per unit demonstrates strong institutional investor confidence, particularly with Condire's lead order securing an 8.8% stake. The warrant structure, priced at US$3.00 and valid until 2029, provides additional upside potential while maintaining anti-dilution protection through the blocker provision.

The strategic allocation of funds towards the Cariboo Gold Project's de-risking and pre-construction activities, alongside debt reduction, improves the company's risk profile. The successful capital raise positions ODV well for the upcoming optimized feasibility study in Q2 2025, a important catalyst for project advancement. The 4.5% commission rate is within industry standards, indicating reasonable financing costs.

MONTREAL, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Osisko Development Corp. (NYSE: ODV, TSXV: ODV) ("Osisko Development" or the "Company") is pleased to announce the successful closing of its previously announced private placement of 31,946,366 units of the Company ("Units") at a price of US$1.80 per Unit, including the exercise in full of the Agents' option, for aggregate gross proceeds of approximately US$57.5 million (the "Offering"). The Offering included a lead order from Condire Investors, LLC ("Condire"), an investment firm based in Dallas, Texas, resulting in an approximate 8.8% holding in the Company's issued and outstanding common shares immediately following the closing of the Offering (on a non-diluted basis). Concurrently with the Offering, the Company and Condire have agreed to find a mutually agreeable addition to the Company’s Board of Directors or, alternatively, a Board observer.

Sean Roosen, Chair and CEO of Osisko Development, commented: "The closing of this significantly oversubscribed offering – alongside the recently closed successful US$34.5 million non-brokered offering – places the Company in an excellent position to execute on key project de-risking milestones and pre-construction activities for the Cariboo Gold Project, including completion of an updated optimized feasibility study expected in Q2 2025. We are very excited to welcome Condire as a prominent shareholder. The strong support received in this offering from Condire and a number of other large long-term focused institutional investors is a testament to the quality and value of the Cariboo project along with a positive endorsement of our team. With an improved balance sheet and capital structure, the Company is primed for success ahead of a pivotal year."

Each Unit consists of one common share of the Company (each, a "Common Share") and one Common Share purchase warrant (each, a "Warrant"). Each Warrant shall entitle the holder thereof to purchase one Common Share (each, a "Warrant Share"), at a price of US$3.00 per Warrant Share on or prior to October 1, 2029. The Warrants acquired by Condire under the Offering are subject to a blocker provision, which limits Condire's exercise of any Warrants that, upon giving effect to such exercise, would cause the Common Shares owned by Condire to be equal to or exceed 10% of the issued and outstanding Common Shares.

The Offering was conducted on a "best efforts" agency basis by National Bank Financial Inc., as lead left agent, and Cantor Fitzgerald Canada Corporation and Eight Capital, as lead agents (collectively, the "Agents"). In connection with the Offering, the Agents were paid a cash commission equal to 4.5% of the aggregate gross proceeds of the Offering.

The Company intends to use the net proceeds of the Offering towards the advancement of its Cariboo and Tintic projects, to partially repay its existing credit facility and for general corporate purposes. All securities issued under the Offering will be subject to a hold period expiring four months and one day from the date of issue pursuant to applicable Canadian securities laws. The Offering remains subject to final acceptance of the TSX Venture Exchange.

The securities have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the "United States" or "U.S. persons" (as such terms are defined in Regulation S under the U.S. Securities Act) absent registration under the U.S. Securities Act and all applicable U.S. state securities laws or compliance with an exemption from such registration requirements. This news release is not an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction.

ABOUT OSISKO DEVELOPMENT CORP.

Osisko Development Corp. is a North American gold development company focused on past-producing mining camps located in mining friendly jurisdictions with district scale potential. The Company's objective is to become an intermediate gold producer by advancing its 100%-owned Cariboo Gold Project, located in central B.C., Canada, the Tintic Project in the historic East Tintic mining district in Utah, U.S.A., and the San Antonio Gold Project in Sonora, Mexico. In addition to considerable brownfield exploration potential of these properties, that benefit from significant historical mining data, existing infrastructure and access to skilled labour, the Company's project pipeline is complemented by other prospective exploration properties. The Company's strategy is to develop attractive, long-life, socially and environmentally sustainable mining assets, while minimizing exposure to development risk and growing mineral resources.

For further information, visit our website at www.osiskodev.com or contact:

Sean Roosen
Chairman and CEO
Email: sroosen@osiskodev.com
Tel: +1 (514) 940-0685
Philip Rabenok
Director, Investor Relations
Email: prabenok@osiskodev.com
Tel: +1 (437) 423-3644

CAUTION REGARDING FORWARD LOOKING STATEMENTS

This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward- looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding any potential outcome. Such statements in this news release may include, without limitation, statements pertaining to the use of the net proceeds from the Offering and the results therefrom; the results of derisking programs at the Cariboo project; the results and timing of the updated feasibility study at the Cariboo project; progress in respect of pre-construction activities at the Cariboo project; and the ability to obtain the final acceptance of the TSX Venture Exchange. Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Actual results could differ materially due to a number of factors, including, without limitation, satisfying the requirements of the TSX Venture Exchange (if at all). Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except 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.


FAQ

How much did Osisko Development (ODV) raise in its recent private placement?

Osisko Development raised approximately US$57.5 million through a private placement of 31,946,366 units at US$1.80 per unit.

What is the exercise price and expiry date for ODV's new warrants?

The warrants have an exercise price of US$3.00 per share and expire on October 1, 2029.

What stake did Condire Investors acquire in Osisko Development (ODV)?

Condire Investors acquired approximately 8.8% of Osisko Development's issued and outstanding common shares through the offering.

When is ODV's updated Cariboo Gold Project feasibility study expected?

The updated optimized feasibility study for the Cariboo Gold Project is expected in Q2 2025.

Osisko Development Corp.

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