OSESCO Development Company (ODF-TSXV, NYSE) announced the pricing of a $275 million offering in the principal amount of 4.125% convertible notes due 2031. The proceeds will be used to finance Osisko’s Cariboo Gold Project in British Columbia and for general working capital purposes.
The convertible senior notes will be offered in a private placement to persons reasonably believed to be qualified institutional buyers, the company said. Pursuant to Rule 144A under the US Securities Exchange Act of 1033.
The notes were priced at a conversion premium of approximately 25% to the last reported selling price of the Company’s common stock, no par value ($2.94 per common share) on the New York Stock Exchange on May 20, 2026.
Qualified institutional buyers have agreed to purchase a principal amount of $225.0 million of notes. The Company intends to grant purchasers of the Initial Notes the option to purchase, within a 13-day period beginning with, and including, the date on which the Notes were first issued, up to an additional $25 million principal amount of Notes.
Double Zero Capital, LP, an affiliate of the Company, has expressed interest in purchasing up to $50 million of notes in a separate concurrent private placement. It is expected that the subordinated bonds will sell at the same price and form part of the same series.
The offering and private placement are expected to close on May 26 and May 29, 2026, respectively, subject to satisfactory closing conditions.
A portion of the net proceeds is expected to be used to purchase cash-settled capped calls to offset potential economic dilution at a cap price of $5.88 per share, representing a premium of $2.94, the last reported sale price of common stock on the NYSE on May 20, 2026.
Shares of Osisko Development were active on the news, falling 14.25%, or 57 cents, to $3.43. Shares are trading in a 52-week range of $6.63 to $2.50.
Osisko is a North American continental gold developer with a focus on previously producing mining camps located in friendly jurisdictions with region-wide potential. The company aims to become an intermediate gold producer through the development of its flagship 100% owned Cariboo Gold project. Its project pipeline is complemented by the Tintec Project in the historic East Tintec Mining District in Utah, and the San Antonio Gold Project in Sonora, Mexico.
The Cariboo Project is located in the historic Wells-Barkerville mining camp and consists of three different sites, including the Mine Site Complex near Wells, the Bonanza Ledge site, and the QR Mill.
Potential mineral reserves currently stand at 2.07 million ounces of gold on hand (17.8 million tonnes grading 3.62 g/t gold). Furthermore, there is an indicated resource of 1.6 million ounces, as well as an inferred resource of 1.86 million ounces.
