Osisko Gold Group Confirms High-Grade Proserpine System and Secures $450M Credit Facility

• Osisko Gold Group confirmed a high-grade gold system at the Proserpine target, expanding the mineralized footprint to 1km by 0.5km with drill holes remaining open in all directions.
• The company secured a US$450 million senior secured loan from Appian Capital to fund the development and construction of its permitted Cariboo Gold Project.
• Initial drill results at Proserpine suggest potential for open-pit mining methods, prompting the resumption of drilling with three rigs to increase density. Osisko Gold Royalties Ltd. has transitioned into a pure-play royalty company, trading below net asset value with stable cash flows.
• The combined exploration success and financing position Osisko to potentially become an intermediate gold producer by advancing district-scale assets.

Osisko Gold Group Inc. has announced initial diamond drilling results from the Proserpine regional greenfield target, located approximately seven kilometres southeast of the Cariboo Gold deposit in central British Columbia . The program completed 6,463 metres in 14 holes between February and May 2026, confirming high-grade gold structures and broader lower-grade zones . These results suggest potential for open pit mining, prompting the company to resume drilling with three rigs to increase density and explore new zones near its permitted Cariboo project .

Drilling expanded the known mineralized footprint at Proserpine to roughly one kilometre along strike by half a kilometre in width . Gold was encountered from near surface to depths beyond 400 metres, with mineralization remaining open in all directions . With all holes that reached target depth intersecting mineralization, Osisko has resumed drilling with three rigs . The company plans a further 26,500 metres to increase drill density at Proserpine Southeast and begin first-pass drilling at Proserpine Northwest .

Notable intercepts included 95.93 g/t Au over 4.60 m at 71 m vertical depth and 5.46 g/t Au over 8.60 m at 77 m vertical depth . Chris Lodder, President, stated that the results highlight the potential for a significant new gold mineralized system of scale . The company aims to expand the mineralized footprint and refine the geological model, potentially extending the mine life of its flagship Cariboo project .

How Will the $450 Million Financing Accelerate Production?

Appian Capital Advisory has extended a US$450 million senior secured loan to Osisko Gold Group to fund the development and construction of the permitted Cariboo Gold Project in British Columbia . The facility includes a US$100 million initial draw to accelerate pre-construction activities and de-risk the project ahead of a final investment decision . Subsequent draws totaling US$350 million are available upon final investment decision, subject to customary project milestones .

The proceeds will fund the development and construction of the Cariboo Gold Project, which is 100%-owned and near-construction ready. The 2025 Feasibility Study outlines a potential 10-year mine life delivering 1.89 million ounces of gold . This transaction supports Osisko’s objective to become an intermediate gold producer by advancing its district-scale assets in mining-friendly jurisdictions .

The US$100 million initial draw will support infill drilling, detailed engineering, procurement, and underground development . This financing diversifies Appian’s portfolio, adding exposure to gold’s uncorrelated return profile alongside its existing base metals and critical minerals holdings . The facility is structured to support the rapid advancement of the Cariboo project toward production .

Why Is Osisko Gold Royalties Trading Below Net Asset Value?

Osisko Gold Royalties Ltd. is transitioning into a pure-play royalty company, having separated from Osisko Mining to eliminate management conflicts and focus on high-margin royalty streams . Analysts view the company favorably due to its trading below net asset value, stable cash flows, and exposure to precious metals . The royalty model provides stable cash flows as the company is paid regardless of operational cost inflation, reducing exposure to mining operator risks .

The company has undergone significant structural changes, including a transition under new management that has addressed previous conflicts . A key catalyst is the separation from Osisko Mining through a secondary offering, allowing the company to sell its stake in Osisko Development to become a pure royalty entity . Market commentary highlights that the stock trades at approximately 1.1x Net Asset Value, making it cheaper on valuation compared to peers like Agnico Eagle Mines .

Investors are drawn to the company's exposure to gold, which has been performing strongly, and its potential for organic growth estimated at 10-12% per annum . While the dividend yield is modest, the capital appreciation potential and low valuation relative to NAV are seen as attractive . The company holds royalties from multiple North American mines, offering geographic diversification without the jurisdictional risks associated with foreign assets .

Osisko Gold Group is a Canadian gold mining and exploration company listed on the NYSE and TSXV, with its principal offices in Toronto . The company’s primary focus is advancing its 100%-owned, permitted Cariboo Gold Project in central British Columbia . Operating within the broader Cariboo Gold Project property, Osisko Gold is actively pursuing regional greenfield targets to expand its resource base and extend mine life .

The company is led by an experienced management team with a proven track record of discovering, funding, developing, and operating tier-1 projects globally . This includes Canadian Malartic, one of Canada's largest gold-producing mines . Osisko is also advancing the Tintic Project in the historic East Tintic mining district in Utah, U.S.A .

The combination of high-grade exploration success at Proserpine and significant project financing positions Osisko Gold Group for potential growth . The company’s strategy centers on leveraging district-scale potential in established mining camps to build a portfolio of high-value assets . The resumption of drilling with three rigs underscores the prospect of a sizeable new gold system close to its permitted Cariboo project .