Osisko Gold Group (TSX-V:OGG) has moved closer to accessing the remaining US$350 million ($490.14 million) under its Appian Capital Advisory credit facility.
Appian has confirmed Osisko satisfied key technical conditions for the second draw after reviewing results from the Lowhee Zone infill drilling and ore sorting programs at the Cariboo Gold Project in British Columbia, Canada.
The lender has removed those conditions from the facility, although the draw remains subject to construction-readiness and other customary requirements.
Osisko says ongoing work includes detailed engineering, procurement, updated project costs, and development of the construction schedule.
Both parties have also amended the US$450 million senior secured project loan facility to reduce interest margins, revise covenants, and extend Osisko’s option to settle accrued interest in kind for another 12 months.
For the initial draw, the interest rate decreases to the three-month secured overnight financing rate (SOFR) plus 9%, from SOFR plus 9.50%. The amendment also removes an additional 0.10% annual SOFR adjustment.
The rate applying to the second draw and subsequent amounts falls to SOFR plus 7.25%, from SOFR plus 7.50%.
CEO Sean Roosen says the revised terms provide Osisko with additional flexibility as it moves Cariboo towards construction readiness.
“Appian’s confirmation that the key technical conditions precedent have been satisfied, including those related to the completed Lowhee infill drilling and ore sorting programs, represents an important validation of the quality of this deposit and the significant de-risking work our team has completed,” Roosen says.
Osisko’s wholly owned subsidiary Barkerville Gold Mines entered the facility in July 2025 to finance development and construction of the fully permitted, 100%-owned project. Existing guarantees, security, and other obligations remain in place.
Osisko is a North America-focused gold exploration and development company focused on advancing Cariboo and the Tintic Project in the historic East Tintic mining district in Utah, US.
Write to France Pinzon at Mining.com.au
Images: Osisko Gold Group
