Osisko Gold (TSX:OGG) has completed its US$600 million ($864 million) offering of 9.250% senior secured notes due 2031.
The notes mature on 1 October 2031 and are non-callable for the first two years. Interest will be paid semi-annually on 1 April and 1 October each year, commencing 1 April 2027.
Net proceeds of approximately US$578 million were raised after deducting initial purchasers’ discounts and estimated offering expenses.
Funds were used to repay $US120.8 million outstanding under its senior secured credit facility with Appian Capital Advisory, fund a segregated interest reserve account for the first five interest payments, and establish a disbursement account for the Cariboo Gold Project in British Columbia, Canada.
Chairman and CEO Sean Roosen says the completion of this offering further bolsters the company’s ‘already-strong’ balance sheet position.
“With construction of the Cariboo Gold Project underway following our positive final investment decision earlier this month [… and] together with other available sources of capital, [the completion of this offering] fully funds us through commercial production anticipated in 2029,” Roosen says.
“Refinancing the existing Appian project finance facility on cost-effective terms lowers our overall cost of capital and provides greater financial flexibility as we progress construction.”
The notes are guaranteed by certain subsidiaries, including Barkerville Gold Mines, which holds the Cariboo Project. The notes are secured by first priority liens on the company’s property.
Osisko Gold estimates total sources of capital from 1 August 2026 through commercial production in the second half of 2029 at C$1.74 billion ($1.75 million), including C$879 million cash at 30 June 2026, C$65 million in marketable securities, and C$631 million from the notes proceeds. Total uses are estimated at C$1.53 billion, leaving a surplus of C$215 million.
The private placement offering was completed to qualified institutional buyers under Rule 144A and outside the US pursuant to regulation S.
Osisko Gold is a North American gold developer focused on past-producing mining camps with district-scale potential.
Write to Paula Fabe at Mining.com.au
Main image: Osisko Gold
