Osisko Development Soars 5.74% on $450M Financing Deal

Osisko Development's stock surged by 5.74% in pre-market trading on July 21, 2025, driven by significant developments in its financing and project advancement.

Osisko Development has secured a substantial US$450 million financing facility from Appian Capital Advisory for the development of its Cariboo Gold Project in British Columbia, Canada. This financing includes an initial draw of US$100 million to accelerate pre-construction activities and de-risk the project. The credit facility is structured in two tranches, with the initial draw and subsequent draws available over 36 months, maturing in July 2033. The interest rates are set at SOFR plus 9.50% for the initial draw, reducing to SOFR plus 7.50% for subsequent draws. As part of the agreement, Osisko will grant Appian 5,625,031 warrants at CAD$4.43 per share, exercisable until July 2028.

This financing agreement represents a transformative development for Osisko Development, providing immediate liquidity and a clear pathway to full project financing. The initial funds will be used for a 13,000-meter infill drilling campaign and engineering work, which will materially de-risk the project. Additionally, the company can repay its existing US$25 million term loan with National Bank, eliminating near-term debt maturity pressure. The deal structure also provides financial flexibility with the option to pay interest in-kind during the initial period, preserving cash flow.

The involvement of Appian, a specialized mining investor with technical expertise, validates the project's fundamentals. This partnership positions Osisko to maintain development momentum through pre-construction into a formal investment decision, potentially avoiding the dilution that would come with an all-equity financing approach. The phased structure of the financing aligns capital deployment with project advancement, maintaining accountability through specific development triggers.