Osisko Mining Enters $154M Convertible Placement with Northern Star Resources for Windfall Project
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Osisko Mining has signed an agreement for a private placement of $154 million in a convertible senior unsecured debenture due December 1, 2025 with Northern Star Resources Limited. In addition, Osisko and Northern Star have agreed to negotiate, on an exclusive basis, the terms of an earn-in and joint-venture on up to a 50 percent interest in Osisko’s Windfall Project. The net proceeds of the debenture will be used for the advancement of Osisko’s Windfall Project and for general corporate purposes.
“We are pleased to announce today’s investment agreement and Northern Star’s intention to negotiate an earn-in joint-venture partnership on our Windfall Project. The potential of joining forces with Northern Star, a well-respected gold producer with a depth of experience in mining underground high-grade deposits similar to the Windfall Project, would help de-risk the remaining work ahead to bring the Windfall Project to successful production,” said John Burzynski, chairman and chief executive officer of Osisko.
“We are confident that, subject to reaching an agreement with Northern Star on the earn-in joint-venture terms, they will be a very strong partner in assuring our development plans for the Windfall Project. Going forward, Osisko shareholders can be confident that there should be no significant shareholder dilution needed to successfully bring the Windfall Project to production,” added Burzynski.
The debenture may be converted by Northern Star at any time after the first anniversary of closing. Upon entering into the earn-in and joint venture agreement, Northern Star may convert the debenture into an interest in the property at a conversion premium of 125 percent.
In addition, the debenture may be redeemed by Osisko at any time after the second anniversary of closing for cash or common shares. The cebenture is subject to standard anti-dilution, events of default and early payment penalty provisions. In the event of an announced change of control transaction, the debenture may be accelerated and converted into common shares at the conversion price or a proportionate interest in the Windfall Project.
About Osisko Mining
Osisko is a mineral exploration company focused on the acquisition, exploration, and development of precious metal resource properties in Canada. Osisko holds a 100 percent interest in the high-grade Windfall gold deposit located between Val-d’Or and Chibougamau in Québec and holds a 100 percent undivided interest in a large area of claims in the surrounding the Urban Barry area and nearby Quévillon area (over 2,600 square kilometres).
To stop by Osisko’s website, CLICK HERE
About Northern Star Resources
Northern Star Resources Limited engages in the exploration, development, mining, and processing of gold deposits in Australia. It also sells refined gold. The company holds interests in the Pogo, Kalgoorlie, KCGM, Jundee, Thunderbox, and Carosue Dam operations, as well as Paulsens, Tanami, and Bronzewing projects. It operates in Western Australia, the Northern Territory, and Alaska. The company was incorporated in 2000 and is headquartered in Subiaco, Australia.
To stop by Northern Star’s website, CLICK HERE
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