Osisko Development to Close Second Tranche of Non-Brokered Private Placement of Units

Rhea-AI Summary

Osisko Development (NYSE: ODV, TSXV: ODV) announced plans to close a second tranche of its non-brokered private placement of up to 13,888,888 units at US$1.80 per unit, aiming to raise approximately US$25 million. The second tranche is expected to close around the week of October 14, 2024, pending necessary approvals. Each unit includes one common share and one warrant, allowing the purchase of an additional share at US$3.00 until October 1, 2029. The raised funds will support the Cariboo Gold Project, Tintic Project, and general corporate purposes. All issued securities will be subject to a holding period of four months and one day as per Canadian laws. The offering requires final TSX Venture Exchange acceptance and is not available in the United States or other restricted jurisdictions.

Positive

• Osisko Development plans to raise approximately US$25 million through a second tranche of private placement.
• Funds will be used to advance the Cariboo Gold Project and Tintic Project.

Negative

• The offering is subject to various conditions and necessary approvals.
• All securities issued will be under a four-month holding period, potentially limiting liquidity.

Insights

Financial Analyst

Osisko Development's decision to close a second tranche of its non-brokered private placement indicates strong investor interest in the company's projects. The additional US$25 million in gross proceeds will significantly bolster ODV's cash position, providing important funding for the advancement of its Cariboo Gold Project and Tintic Project.

The pricing of US$1.80 per Unit and the US$3.00 Warrant exercise price suggest confidence in the company's future prospects. The 5-year warrant term until 2029 offers investors long-term upside potential. However, the dilutive effect of issuing up to 13,888,888 new shares (plus potential warrant exercises) should be considered, especially given ODV's current market cap of about $207 million.

The absence of finder's fees or commissions is positive for capital efficiency. Investors should monitor the company's progress in deploying this capital effectively, particularly in advancing its key projects, as this will be important for future value creation.

MONTREAL, Oct. 07, 2024 (GLOBE NEWSWIRE) -- Osisko Development Corp. (NYSE: ODV, TSXV: ODV) ("Osisko Development" or the "Company") is pleased to announce, further to its news release dated October 1, 2024, that due to strong market demand, the Company intends to close a second tranche of its non-brokered private placement of up to 13,888,888 units (the "Units") at a price of US$1.80 per Unit for additional gross proceeds to the Company of up to approximately US$25 million (the "Offering").

The Company anticipates closing the second tranche of the Offering on or about the week of October 14, 2024, subject to certain conditions including, but not limited to, the receipt of all necessary approvals. Consistent with the first tranche of the Offering, no finder's fee or commissions are payable in connection with the Offering.

Each Unit consists of one common share of the Company (each, a "Common Share") and one Common Share purchase warrant of the Company (each, a "Warrant"), with each Warrant entitling the holder thereof to purchase one additional Common Share (each, a "Warrant Share") at a price of US$3.00 per Warrant Share on or prior to October 1, 2029.

The Company intends to use the net proceeds of the Offering towards the advancement of its Cariboo Gold Project and Tintic Project, 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.

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 in which such offer, solicitation or sale would be unlawful. 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 absent registration under the 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 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	Philip Rabenok
Chairman and CEO	Director, Investor Relations
Email: sroosen@osiskodev.com	Email: prabenok@osiskodev.com
Tel: +1 (514) 940-0685	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 anticipated closing of a second tranche of the Offering, the proceeds and timing for the closing of a second tranche of the Offering, the use of proceeds from the Offering 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

What is the purpose of Osisko Development's second tranche of private placement?

The second tranche aims to raise approximately US$25 million to support the Cariboo Gold Project, Tintic Project, and general corporate purposes.

When will Osisko Development close the second tranche of the private placement?

The second tranche is expected to close around the week of October 14, 2024, subject to necessary approvals.

What are the terms of the units in Osisko Development's private placement?

Each unit includes one common share and one warrant, with the warrant allowing the purchase of an additional share at US$3.00 until October 1, 2029.

What restrictions apply to the securities issued in Osisko Development's offering?

All issued securities will be subject to a holding period of four months and one day as per Canadian laws.