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Windfall for Osisko Mining

Quebec-focused gold explorer Osisko Mining (TSX: OSK) announced two bought deal placements within hours yesterday, designed to raise a total of C$40 million (US$30.6 million).
Windfall for Osisko Mining Windfall for Osisko Mining Windfall for Osisko Mining Windfall for Osisko Mining Windfall for Osisko Mining

Quebec explorer Osisko Mining announces two bought deal placements within hours

Staff reporter

It first announced a bought deal placement of flow-through shares at $5.67 to raise $30 million (US$23 million), with a syndicate of underwriters led by Canaccord Genuity Corp.

Hours later, it announced a further $10 million (US$7.6 million) raising, at $3.15 per share, in an agreement with a syndicate of underwriters also led by Canaccord.

Osisko said proceeds from the second placement would be used for general working capital, while the first would be put towards exploration at its Quebec projects.

The underwriters were also granted the option to sell a further circa 800,000 flow-through shares which could raise an extra $4.5 million.

The company has an extensive exploration programme underway at its flagship Windfall Lake gold project, where recent bulk sampling delivered a higher head grade than expected.
 
Windfall Lake currently has an indicated 2.87 million tonne resource grading 8.17g/t and an inferred 10.35Mt at 7.11g/t.

Osisko recently honed its focus on Windfall, hiving off assets including the Garrison deposit in a reverse takeover of Chantrell Mining, with the new entity O3 Mining (TSXV: OIII) debuting on the TSX Venture Exchange on Tuesday.

Osisko Mining shares have been trending higher since a 52-week low of $1.60 in August.

They closed down 3.46% yesterday to $3.35 to capitalise it about $882 million (US$675 million).