Osisko Gold Group (TSX-V:OGG) intends to offer US$500 million ($701.58 million) of senior secured notes due in 2031 to refinance debt and fund its Cariboo Gold Project in British Columbia, Canada.
The proposed offering remains subject to market conditions, with the interest rate and other terms to be determined at pricing.
Osisko plans to allocate approximately US$120.9 million ($169.64 million) of the net proceeds to repay outstanding amounts under its senior secured project loan facility with funds advised by Appian Capital Advisory.
Repayment would also terminate all commitments under the Appian facility.
Part of the proceeds would establish a segregated reserve covering the first five interest payments on the notes. The balance would be deposited into a separate disbursement account to advance construction at Cariboo.
Certain Osisko subsidiaries will guarantee the notes. These are expected to include Barkerville Gold Mines, the subsidiary associated with Cariboo.
The security package will include first-priority liens over property held by Osisko and each guarantor, including interests in subsidiaries and certain personal and real property, subject to specified exceptions.
The company says it plans to offer the notes to qualified institutional buyers in the US under Rule 144A and to non-US investors outside the country under Regulation S.
In Canada, the notes will be offered through a private placement under applicable prospectus exemptions.
Osisko Gold is a North American gold developer focused on past-producing mining camps. Its fully permitted and wholly owned Cariboo Gold Project sits within a broader regional land package in central British Columbia, while its portfolio also includes the Tintic Project in Utah, US.
Write to France Pinzon at Mining.com.au
Images: Osisko Gold Group
