US$450M secured for Cariboo Gold Project in central B.C.

Key Takeaways:

• Osisko Development has secured US$450 million in financing from Appian Capital Advisory to advance its fully permitted Cariboo Gold Project in British Columbia.
• An initial US$100 million draw will support early construction activities, repay existing debt, and fund infill drilling and underground development.
• Appian receives 5.6 million warrants as part of the deal, signaling a long-term strategic partnership and confidence in the project’s potential.

The Whole Story:

Osisko Development Corp. has secured a US$450-million project loan from Appian Capital Advisory to fund development of its Cariboo Gold Project in central British Columbia.

The financing includes an initial US$100-million draw that will support early construction activities, repay a US$25-million term loan with National Bank of Canada, and fund infill drilling, detailed engineering and underground development. The remaining US$350 million is available in additional tranches over the next three years, contingent on key project milestones and approvals.

The credit facility marks a major step forward for the Montreal-based gold developer, which aims to advance the fully permitted, 100%-owned Cariboo project toward production. Osisko Development said the funding provides the financial flexibility to maintain momentum as it works toward a formal construction decision.

“This is a significant endorsement of the Cariboo Gold Project and a major milestone in advancing it towards a construction decision,” said Osisko CEO Sean Roosen. “Appian is the leading investor in the mining space and has a successful track record of identifying and supporting the development of high-quality assets.”

Appian, a London-based private capital fund focused on the mining sector, described Cariboo as a strong fit with its investment strategy. “It is situated in a stable jurisdiction, boasts a robust existing minerals base with clear upside potential, and is being led by an experienced management team,” said Appian founder and CEO Michael Scherb.

The loan is structured as a senior secured facility through Osisko’s wholly owned subsidiary, Barkerville Gold Mines Ltd. It matures in 2033, or in 2028 if Osisko does not access any of the follow-up tranches. Interest on the initial draw is set at SOFR plus 9.5%, with partial payment-in-kind options available in the first year. Later draws will be charged at a lower rate.

As part of the deal, Appian will receive 5.6 million non-transferrable warrants to purchase Osisko common shares at $4.43, exercisable over the next three years.

Advisors on the deal included GenCap Mining Advisory, Maxit Capital LP, Bennett Jones LLP and Torys LLP.

The Cariboo project is Osisko’s flagship asset, located in a historic gold mining camp in B.C.’s interior. The company also holds projects in Utah and Mexico.