Osisko raises C$40m for exploration, working capital
Only hours after Osisko Mining (TSE: OSK) launched a C$30 million flow-through share offering, the company put out word that it also organized a C$10 million bought deal private placement of common shares.
The company will issue about 5.3 million flow-through shares priced at C$5.67 each to a syndicate of underwriters led by Canaccord Genuity. The underwriters have an option to pick up 495,000 additional flow-through shares for C$4.5 million, exercisable 48 hours prior to the closing of the original deal.
The company will use the proceeds of the flow-through shares for exploring its precious metals properties in the Abitibi Greenstone belt. Its flagship property is the Windfall gold project 200 km northeast of Val-d’Or, Québec. Osisko has already outlined indicated resources of 2.9 million tonnes grading 8.17 g/t gold for 754,000 contained oz. and inferred resources of 10.4 million tonnes grading 7.11 g/t for almost 2.4 million contained oz. of gold. The project has a pre-production capex of C$240.6 million.
Osisko also holds several other precious metals projects. Those receiving the most interest are the Urban Barry Greenfields gold project and Quevillon gold project, respectively 200 km and 160 km from Val-d’Or.
The remaining C$10 million was raised by Osisko through the sale of approximately 3.2 million common shares priced at C$3.15 each. The company plans to use the proceeds for general working capital purposes.
This article first appeared in the Canadian Mining Journal