Osisko Development Reports Fourth Quarter and Year-End 2024 Results
(All dollar amounts are expressed in Canadian dollars, unless stated otherwise)
MONTREAL, March 28, 2025 (GLOBE NEWSWIRE) -- Osisko Development Corp. (NYSE:ODV, TSXV:ODV) ("Osisko Development" or the "Company") reports its financial and operating results for the three and twelve months ended December 31, 2024 ("Q4 2024").
Q4 2024 HIGHLIGHTS
Operating, Financial and Corporate Updates:
As of December 31, 2024, the Company had approximately $106.7 million in cash and cash equivalents. Approximately $36.0 million (US$25.0 million) was outstanding as of the end of Q4 2024 under the delayed draw term loan with National Bank of Canada, which matures on October 31, 2025.
The Company completed a non-brokered private placement of units pursuant to which it issued an aggregate of 19,163,410 units at a price of US$1.80 per unit for gross proceeds of approximately US$34.5 million (the "2024 Non-Brokered Private Placement"). The 2024 Non-Brokered Private Placement was completed in two tranches comprised of the issuance of (i) 13,426,589 units at a price of US$1.80 per unit for gross proceeds of approximately US$24.2 million, which tranche closed on October 1, 2024, and (ii) 5,736,821 units at a price of US$1.80 per unit for gross proceeds of approximately US$10.3 million, which tranche closed on October 11, 2024. Each unit was comprised of one Common Share and one Common Share purchase warrant of the Company entitling the holder thereof to purchase one Common Share at a price of US$3.00 on or prior to October 1, 2029.
On November 12, 2024, the Company completed a brokered private placement pursuant to which it issued an aggregate of 31,946,366 units at a price of US$1.80 per unit for aggregate gross proceeds of approximately US$57.5 million, including the exercise in full of the option granted to the agents (the "2024 Brokered Private Placement"). Each unit was comprised of one Common Share and one Common Share purchase warrant of the Company entitling the holder thereof to purchase one Common Share at a price of US$3.00 on or prior to October 1, 2029. In connection with the 2024 Brokered Private Placement, the agents were paid a cash commission equal to 4.5% of the aggregate gross proceeds.
On December 5, 2024, Mr. Stephen Quin was appointed as independent director to the Company's board of directors and, in connection thereof, was subsequently granted 80,000 deferred share units of the Company on December 19, 2024.
On December 12, 2024, Ms. Marina Katusa resigned from the Company's board of directors.
Cariboo Gold Project, British Columbia, Canada (100%-owned)
Fully Permitted Status. On November 20, 2024, the Company was granted permits pursuant to the Mines Act (British Columbia) for its Cariboo Gold Project. Subsequently, on December 12, 2024, the Company was granted permits pursuant to the Environmental Management Act (British Columbia) for the Cariboo Gold Project. Together with the Mines Act (British Columbia) permits, these approvals mark the successful completion of the permitting process for key approvals, solidifying the Cariboo Gold Project's shovel-ready status.
The Mines Act (British Columbia) permits grant the Company the ability to proceed with the construction, operation and reclamation activities on each of the sites outlined within the scope of the Project. The Environmental Management Act (British Columbia) permits pertain to any project-related discharges to the environment, including water and air, and the framework and limitations thereof, within the areas outside of the immediate mine site boundaries.
Work is ongoing with the Ministry of Water, Land and Resource Stewardship and the Ministry of Forests on obtaining all necessary approvals for the construction of the transmission line.
On November 7, 2024, the Company announced that, while it had yet to reach an agreement with the Xatśūll First Nation, it remained committed to ongoing engagement and consultation.
Project Financing. The Company is actively engaged in ongoing discussions on various funding options, including a comprehensive project construction financing package, for the development of the Cariboo Gold Project.
Pre-Construction Activities. During Q1 2024, under an existing provincial permit, the Company commenced an underground development drift from the existing Cow Portal into the Cariboo Gold Project's Lowhee Zone to extract a bulk sample of up to 10,000 tonnes of mineralized material.
100% of the underground development has been successfully completed, totalling approximately 1,172 m, to access the target area.
The extraction, sampling, assaying, and analysis of mineralized material from the target zone is currently ongoing. Approximately 7,400 tonnes of material has been extracted to date. Lengthy timeframes for receipt of assays and analysis of the results have extended completion of the bulk sampling program into Q2 2025. Once all information is available, a reconciliation process to compare the bulk sample results with the predicted tonnes and grade will be undertaken.
Optimized Feasibility Study. The Company is in advanced stages of completing an optimized feasibility study ("OFS") for the Cariboo Gold Project. The OFS will incorporate opportunities to enhance and streamline mine development and the process flowsheet, supporting an accelerated development timeline to reach 4,900 tonnes per day throughput earlier than previously contemplated. It will also reflect updated metal price and foreign exchange assumptions. Additionally, the OFS will integrate updated operating and capital cost estimates, while considering ways to reduce and mitigate any potential capital and operating cost pressures. The OFS base case will remain aligned with the existing permitting framework.
Figure 1: Cariboo Gold Project, Permitting Timeline Summary
Tintic Project, Utah, U.S.A. (100%-owned)
Phase I Regional Drilling. In 2024, the Company completed two surface diamond drill holes totalling approximately 2,920 m (9,581 ft) at the Big Hill target area testing for copper-gold-molybdenum porphyry mineralization potential. Based on the geological information from these drill holes, the Company identified several high-priority targets for a next phase of the porphyry exploration program.
Phase II Regional Drilling. As part of the ongoing Phase II regional drilling program initiated in December 2024, the Company is advancing the completion of two drill holes on the Big Hill West and Zuma porphyry targets, expected to be completed in the coming months.
San Antonio Gold Project, Sonora State, Mexico (100%-owned)
The San Antonio Gold Project remains in care and maintenance.
The Company is awaiting further guidance from the Mexican government regarding the permitting process and the status of open-pit mining in the country.
The Company continues to conduct a strategic review of the project and engaged a financial advisor in connection thereof. The strategic review includes, among others, exploring the potential for a financial or strategic partner in the asset or a full or partial sale of the asset.
KEY UPCOMING MILESTONES
Key Project Milestones
Expected Timing of Completion
Anticipated Remaining Costs*
Cariboo Gold Project(1)
Permitting
Completed, Q4 2024
$nil
Electrical and Communication
Q1 2025
$0.7 million
Bulk Sample
Q2 2025
$6.4 million
CGP Underground Development
Q2 2025
$8.7 million
Updated CGP Feasibility
Q2 2025
$2.5 million
Environmental, other pre-construction work & roadheader
