Osisko Mining raising $75M to advance Windfall gold in Quebec

Osisko Mining (TSX:OSK) has arranged a bought deal worth $75 million to be used primarily to advance the Windfall gold project. The property is in the Abitibi greenstone belt on the traditional territory of the Cree First Nation of Waswanipi, 200 km northeast of Val d’Or, Que. It is wholly owned by Osisko.

A syndicate of underwriters led by Canaccord Genuity has agreed to purchase approximately 24.2 million units of Osisko at a price of $3.10 per unit. Each unit will consist of one common share of the corporation and one-half of one share purchase warrant. Each whole warrant will entitle the holder to acquire one share of Osisko for $4.00 in the 18 months following the closing of the bought deal.

Osisko has granted the underwriters an option to purchase about 8.1 million units at the offering price for additional gross proceeds of up to $25 million.

Osisko delivered the feasibility study for Windfall in November 2022. The probable reserve contains 3.1 million oz. in 12.2 million tonnes grading 8.08 g/t gold.

The total measured resource estimate is 811,000 tonnes grading 11.4 g/t gold, containing 297,000 oz. gold. The indicated portion is 10.3 million tonnes at 11.5 g/t gold, containing 3.8 oz. gold. The M+I resource contains 4.1 million oz. of gold. Plus, the inferred category contains 3.3 million oz. gold in 12.3 million tonnes grading 8.4 g/t gold.

An underground mine and 3,400t/d processing plant will be developed for an initial capital expenditure of $788.6 million, which will be paid back after two years after taxes.

Additional information about the Windfall project is posted at www.OsiskoMining.com.