Osisko Development Plans $250M Convertible Notes for Cariboo Gold Project
Osisko Development Corp. has revealed plans to issue convertible senior notes due in 2031. The Canadian gold development company will offer the notes through a private placement, targeting investors in North America. The total value of the offering could reach up to US$250.0 million if additional options are exercised in full. The company aims to raise an initial US$225.0 million, with an option for an extra US$25.0 million. The notes will carry interest, payable every six months, and can be converted into cash, common shares, or a mix of both at Osisko’s discretion. Neither the notes nor the underlying shares have been registered under the U.S. Securities Act.
Double Zero Capital, LP, an affiliate of Osisko, has shown interest in purchasing up to US$50.0 million of the notes. The proceeds will fund the Cariboo Gold Project, a key development in a historic mining region, along with general corporate needs. To manage potential dilution, the company plans to enter into cash-settled capped call transactions. However, the completion of the offering remains subject to market conditions and other factors, with no guaranteed timeline for finalisation.
The private placement, if successful, will provide Osisko with significant capital for its gold projects. The notes offer flexibility in conversion while addressing dilution risks through financial hedging. Investors will receive semi-annual interest payments until the 2031 maturity date.
