OSISKO DEVELOPMENT REPORTS THIRD QUARTER 2024 RESULTS (All monetary references are expressed in Canadian dollars
NYSE | TSXV: ODV NEWS RELEASE
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OSISKO DEVELOPMENT REPORTS THIRD QUARTER 2024 RESULTS
(All monetary references are expressed in Canadian dollars, unless otherwise indicated)
Montreal, Québec, November 13, 2024 – Osisko Development Corp. (NYSE: ODV, TSXV: ODV)
("Osisko Development" or the "Company") reports its financial and operating results for the three
months ended September 30, 2024 ("Q3 2024").
Q3 2024 HIGHLIGHTS
Operating, Financial and Corporate Updates:
• As at September 30, 2024, the Company had approximately $40.8 million in cash and cash
equivalents. An amount of approximately $67.7 million (US$50.0 million) was fully drawn as at
September 30, 2024 under the delayed draw term loan with National Bank of Canada maturing
October 31, 2025.
o Following the completion of the non -brokered private placement on October 14, 2024
(see Subsequent to Q3 2024 ) and pursuant to the credit facility agreement, the
Company completed a mandatory prepayment of US$4.6 million on October 29, 2024.
• 47 ounces of gold sold by the Company from operating activities in the third quarter from the
Cariboo Gold Project ("Cariboo Gold Project") by processing stockpiles at a third-party facility.
• $0.2 million in revenues ($10.4 million in Q3 2023) and $0.1 million in cost of sales ($10.1
million in Q3 2023) generated from operating activities.
• Effective July 4, 2024, as part of its annual compensation review, the Board of Directors
approved the grant of an aggregate of 2,797,400 incentive stock options and an aggregate of
371,800 restricted share units to certain senior officers of the Company in accordance with the
terms of the Company's Option and RSU plans.
Cariboo Gold Project – British Columbia, Canada (100%-owned)
• Permitting Progress. Receipt of the EA Certificate in October 2023 successfully concluded the
EA process for the Cariboo Gold Project (see Figure 1).
o The BC Mines Act permit has been referred for decision to the statutory decision maker
in the BC Ministry of Energy, Mines and Low Carbon Innovation. The review of the
Environmental Management Act permits has been completed, as well, and the Company
is awaiting referral thereof to the statutory decision maker in the immediate future. The
Company anticipates receiving final decisions in Q4 2024.
o On November 7, 2024, the Company announced that while it had yet to reach an
agreement with the Xatśūll First Nation , it would continue to engage and consult with
Xatśūll First Nation, including after any decision on the permits.
o The Company continues to explore project funding options, including fully-funded
solutions for the Cariboo Gold Project.
• Pre-Construction Activities. During Q1 2024, under an existing provincial permit, the
Company commenced an underground development drift from the existing Cow Portal into the
Cariboo Gold Project's mineral deposit at the Lowhee Zone. The objective of the bulk sample
work program is to reach the ore body and extract a 10,000 tonne bulk sample of mineralized
material for ore sorter, heavy equipment and mining testing.
o To date, approximately 1,050 meters of development has been completed or
approximately 90%, with another 122 meters remaining to reach the target area.
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o The Company anticipates completing the bulk sample program and the results thereof
in Q1 2025.
• Optimized Feasibility Study. The Company is advancing work on an optimized feasibility
study ("OFS") for the Cariboo Gold Project, which is anticipated to be completed in Q2 2025.
The scope of the OFS will take into account and include, among other things, certain mining and
processing flowsheet optimizations including an accelerated development timeline to 4,900
tonnes per day throughput , updated metal price and foreign exchange assumptions , and
updated operating and capital cost estimates to reflect the current environment . The OFS will
follow the framework set out in the existing ongoing permitting process.
Figure 1: Cariboo Gold Project – Permitting Timeline Summary
• Wildfire Response. On July 22, 2024, the Company temporarily paused non-essential activities
at its Cariboo Gold Project following a wildfire evacuation order that included the Project. The
wildfire evacuation order was lifted on July 25, 2024, and normal course operations and site
activities at the Cariboo Gold Project resumed on July 26, 2024. The mine site infrastructure
was unaffected by the wildfires.
Tintic Project – Utah, U.S.A. (100%-owned)
• Porphyry Target Drilling. Two surface diamond drill hole s totalling approximately 2,920
meters ("m") (9,581 feet (" ft")) have been completed at the Big Hill target area testing for
copper-gold-molybdenum porphyry mineralization potential . One diamond drill hole was
completed from underground testing porphyry -style mineralization down plunge of the
mineralized structures below Trixie to a depth of 759.6 m (2,492 ft) (Trixie West). Based on the
geological information from these drill holes, the Company has identified several high -priority
targets for the next phase of the porphyry exploration program, including:
o Big Hill West Porphyry Target. The results of the recent and historical drill holes
suggest that the early and potentially better mineralized intrusive phase could be in an
untested area immediately west and southwest of the area drilled at Big Hill.
o Zuma High-Potential Porphyry Target. The Zuma area has been identified as a good
porphyry target that merits initial drill testing and may represent one of the causative
porphyry centres of the East Tintic district.
o Lower Quartzite CRD Target. Based on the compilation of geological, drilling, and
historical data, a potential large scale carbonate replacement deposit (" CRD") may be
located below the footwall of the East Tintic thrust fault. A recommended drill program
has been proposed that targets downdip extensions of known mineralization at Burgin.
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o As part of a Phase II regional drilling program, the Company intends to proceed with
two drill holes on the Big Hill West and Zuma porphyry targets in the coming months.
San Antonio Gold Project – Sonora State, Mexico (100%-owned)
• The San Antonio Gold Project has been under care and maintenance since Q3 2023.
• The Company awaits next steps from the government of Mexico with respect to the permitting
process and the status of open pit mining in the country.
• Strategic Review. The Company is conducting a strategic review of the project and has
engaged a financial advisor in connection thereof. The strategic review includes, among others,
exploring the potential for a financial or strategic partner in the asset or for a full or partial sale
of the asset.
SUBSEQUENT TO Q3 2024
• The Company completed a non -brokered private placement of units pursuant to which the
Company issued an aggregate of 19,163,410 units at a price of US$1.80 per unit for gross
proceeds of approximately US$34.5 million, comprising (i) 13,426,589 units at a pr ice of
US$1.80 per unit for gross proceeds of approximately US$24.2 million, which closed on October
1, 2024 and (ii) 5,736,821 units at a price of US$1.80 per unit for gross proceeds of
approximately US$10.3 million, which closed on October 11, 2024. Eac h unit consists of one
common share of the Company and one common share purchase warrants of the Company
entitling the holder of each common share purchase warrant to purchase one additional common
share at a price of US$3.00 on or prior to October 1, 2029.
• On November 12, 2024, the Company completed a brokered private placement pursuant to
which the Company issued an aggregate of 31,946,366 units of the Company at a price of
US$1.80 per unit for aggregate gross proceeds of approximately US$57.5 million, including the
exercise in full of the option granted to the agents of the private placement (the "Offering").
Each unit consists of one common share of the Company and one common share purchase
warrant of the Company entitling the holder thereof to purchase one additional common share
at a price of US$3.00 on or prior to October 1, 2029. In connection with the brokered private
placement, the agents were paid a cash commission equal to 4.5% of the aggregate gross
proceeds.
o The Offering included a lead order from Condire Investors, LLC (" Condire"), an
investment firm based in Dallas, Texas, resulting in an approximate 8.8% holding in the
Company's issued and outstanding common shares immediately following the closing of
the Offering (on a non-diluted basis). Concurrently with the Offering, the Company and
Condire have agreed to find a mutually agreeable addition to the Company’s Board of
Directors or, alternatively, a Board observer.
KEY UPCOMING MILESTONES
Key Project
Milestones
Expected Timing
of Completion
Anticipated
Remaining Costs*
Cariboo Gold Project(1)
Bulk Sample Q1 2025 $11.1 million
Water and Waste Management Q4 2024 $5.6 million
Electrical and Communication Q4 2024 $0.7 million
Management, environmental, and other pre-permitting work Q4 2024 $2.4 million
Permitting Completed – Q3 2024 $nil
Tintic Project
Regional Drilling – Phase II Q2 2025 $0.8 million
*as at September 30, 2024
Notes:
(1) The expenditures disclosed in this table include amounts approved by the Board of Directors up until the end of December 2024.
Additional expenditures will be required to complete certain of the milestones and are subject to approval by the Board of
Directors.
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Consolidated Financial Statements
The Company's unaudited interim consolidated financial statements (the "Financial Statements") and
management's discussion and analysis ("MD&A") for the three months ended September 30, 2024 are
available on the Company's website at www.osiskodev.com, on SEDAR+ (www.sedarplus.ca) and on
EDGAR (www.sec.gov) under Osisko Development's issuer profile.
Qualified Persons
The scientific and technical information contained in this news release has been reviewed and approved
by Daniel Downton P.Geo., Chief Resource Geologist of Osisko Development, a "qualified person" within
the meaning of National Instrument 43 -101 – Standards of Disclosure for Mineral Projects ("NI 43-
101").
Technical Reports
Information relating to the Cariboo Gold Project and the current feasibility on the Cariboo Gold Project
and the assumptions, qualifications and limitations thereof is supported by the technical report titled
"Feasibility Study for the Cariboo Gold Project, District of Well, British Columbia, Canada", dated January
10, 2023 (amended January 12, 2023) with an effective date of December 30, 2022 prepared for the
Company by independent representatives BBA Engineering Ltd. and supported by independent
consulting firms, including InnovExplo Inc., SRK Cons ulting (Canada) Inc., Golder Associates Ltd.
(amalgamated with WSP Canada Inc. on January 1, 2023, to form WSP Canada Inc.), WSP USA Inc.,
Falkirk Environmental Consultants Ltd., Klohn Crippen Berger Ltd., KCC Geoconsulting Inc., and JDS
Energy & Mining Inc. (the "Cariboo Technical Report"). Reference should be made to the full text of
the Cariboo Technical Report , which was prepared in accordance with NI 43 -101 and is available
electronically on SEDAR + (www.sedarplus.ca) and on EDGAR ( www.sec.gov) under Osisko
Development's issuer profile and on the Company's website at www.osiskodev.com.
Information relating to the Tintic Project and the current mineral resource estimate for the Trixie deposit
(the "2024 Trixie MRE") and the assumptions, qualifications and limitations thereof, is supported by
the technical report titled "NI 43-101 Technical Report, Mineral Resource Estimate for the Trixie Deposit,
Tintic Project, Utah, United States of America" dated April 25, 2024 (with an effective date of March 14,
2024), prepared for the Company by independent representatives of Micon International Limited, being
William Lewis, P. Geo, and Alan J. San Martin, MAusIMM(CP) (the " Tintic Technical Report ").
Reference should be made to the full text of the Tintic Technical Report , which was prepared in
accordance with NI 43-101 and is available electronically on SEDAR+ (www.sedarplus.ca) and on EDGAR
(www.sec.gov) under Osisko Development's issuer profile and on the Company's website at
www.osiskodev.com.
Information relating to San Antonio is supported by the technical report titled " NI 43-101 Technical
Report for the 2022 Mineral Resource Estimate on the San Antonio Project, Sonora, Mexico", dated July
12, 2022 (with an effective date of June 24, 2022) prepared for the Company by independent
representatives of Micon International Limited (the "San Antonio Technical Report", collectively with
the Tintic Technical Report and Cariboo Technical Report, the "Technical Reports"). Reference should
be made to the full text of the San Antonio Technical Report, which was prepared in accordance with NI
43-101 and is available electronically on SEDAR + (www.sedarplus.ca) and on EDGAR ( www.sec.gov)
under Osisko Development's issuer profile and on the Company's website at www.osiskodev.com.
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ABOUT OSISKO DEVELOPMENT CORP.
Osisko Development Corp. is a North American gold development company focused on past -producing
mining camps located in mining friendly jurisdictions with district scale potential. The Company 's
objective is to become an intermediate gold producer by advancing its 100% -owned Cariboo Gold
Project, located in central B .C., Canada, the Tintic Project in the historic East Tintic mining district in
Utah, U.S.A., and the San Antonio Gold Project in Sonora, Mexico. In addition to considerable brownfield
exploration potential of these properties, that benefit from significant hi storical mining data, existing
infrastructure and access to skilled labour, the Company 's project pipelin e is complemented by other
prospective exploration properties. The Company 's strategy is to develop attractive, long -life, socially
and environmentally sustainable mining assets, while minimizing exposure to development risk and
growing mineral resources.
For further information, visit our website at www.osiskodev.com or contact:
Sean Roosen Philip Rabenok
Chairman and CEO Director, Investor Relations
Email: [email protected] Email: [email protected]
Tel: +1 (514) 940-0685 Tel: +1 (437) 423-3644
CAUTIONARY STATEMENTS
Cautionary Statement Regarding Estimates of Mineral Resources
This news release uses the terms measured, indicated and inferred mineral resources as a relative measure of the level of confidence
in the resource estimate. Readers are cautioned that mineral resources are not mineral reserves and that the economic viabi lity of
resources that are not mineral reserves has not been demonstrated. The mineral resource estimate disclosed in this news relea se
may be materially affected by geology, environmental, permitting, legal, title, socio-political, marketing or other relevant issues. The
mineral resource estimate is classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum's "CIM Definition
Standards on Mineral Resources and Mineral Reserves" incorporated by reference into NI 43-101. Under NI 43 -101, estimates of
inferred mineral resources may not form the basis of feasibility or pre -feasibility studies or economic studies except for preliminary
economic assessments. Readers are cautioned not to assume that further work on the stated r esources will lead to mineral reserves
that can be mined economically.
Cautionary Statement Regarding Financing Risks
The Company's development and exploration activities are subject to financing risks. At the present time, the Company has
exploration and development assets which may generate periodic revenues through test mining, but has no mines in the commercial
production stage that generate positive cash flows. The Company cautions that test mining at its operations could be suspended at
any time. The Company's ability to explore for and discover potential economic projects, and then to bring them into production, is
highly dependent upon its ability to raise equity and debt capital in the financial markets. Any projects that the Company de velops
will require significant capital expenditures. To obtain such funds, the Company may sell additional securities including, but not limited
to, the Company's shares or some form of convertible security, the effect of which may result in a substantial dilution of the equity
interests of the Company's Shareholders. Alternatively, the Company may also sell a part of its interest in an asset in order to raise
capital. There is no assurance that the Company will be able to raise the funds required to continue its exploration programs and
finance the development of any potentially economic deposit that is identified on acceptable terms or at all. The failure to obtain the
necessary financing(s) could have a material adverse effect on the Company 's growth strategy, results of operations, financial
condition and project scheduling.
Cautionary Statement Regarding Test Mining Without Feasibility Study
The Company cautions that its prior decision to commence small -scale underground mining activities and batch vat leaching at the
Trixie test mine was made without the benefit of a feasibility study, or reported mineral resources or mineral reserves, demonstrating
economic and technical viability, and, as a result there may be increased uncertainty of achieving any particular level of re covery of
material or the cost of such recovery. The Company cautions that historically, such projects have a much higher risk of economic and
technical failure. Small scale test -mining at Trixie was suspended in December 2022 , resumed in the second quarter of 2023 , and
suspended once again in December 2023 . If and when small-scale test-mining recommences at Trixie, there is no guarantee that
production will continue as anticipated or at all or that anticipated production costs will be achieved. The failure to continue production
may have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations. Fa ilure to
achieve the anticipated production costs may have a material adverse impact on the Company's cash flow and potential profitab ility.
In continuing operations at Trixie after closing, the Company has not based its decision to continue such operation s on a feasibility
study, or reported mineral resources or mineral reserves demonstrating economic and technical viability.
Cautionary Statement to U.S. Investors
The Company is subject to the reporting requirements of the applicable Canadian securities laws and as a result reports infor mation
regarding mineral properties, mineralization and estimates of mineral reserves and mineral resources, including the information in its
technical reports, financial statements, MD&A and this news release, in accordance with Canadian reporting requirements, which are
governed by NI 43-101. As such, such information concerning mineral properties, mineralization and estimates of mi neral reserves
and mineral resources, including the information in its technical reports, financial statements, MD&A and this news release, is not
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comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of the U .S.
Securities and Exchange Commission ("SEC").
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Certain statements contained in this news release may be deemed "forward -looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian
securities legislation (together, "forward -looking statements"). These forward -looking statements, by their nature, require Osisko
Development to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause
actual results to differ materially from those expressed or implied in these forward-looking statements. Forward-looking statements
are not guarantees of performance. Words such as "may", "will", "would", "could", "expect", "believe", "plan", "anticipate", "intend",
"estimate", "continue", or the negative or comparable terminology, as well as terms usually used in the future and the condit ional,
are intended to identify forward -looking statements. Information contained in forward -looking statements is based upon certain
material assumptions that were applied in drawing a conclusion or making a forecast or projection, including the assumptions,
qualifications and limitations relating to the significance of the high-priority target drilling; the utility of modern exploration
techniques; the potential for parallel high -grade gold fissure zones ; the potential of Tintic to host a copper -gold porphyry center ;
the significance of regional exploration potential; the ability of the Company to complete the OFS and the scope, results and timing
of thereof; progress in respect of pre-construction activities at Cariboo; the potential for unknown mineralized structures to extend
existing zones of mineralization; category conversion; the timing and status of permitting ; the results of ongoing stakeholder
engagement; the capital resources available to Osisko Development; the ability of the Company to execute its planned activ ities,
including as a result of its ability to seek additional funding or to reduce planned expenditures; the ability of the Company to obtain
future financing and the terms of such financing; management's perceptions of historical trends, current conditio ns and expected
future developments; the utility and significance of historic data, including the significance of the district hosting past p roducing
mines; future mining activities; the potential of high grade gold mineralization on Trixie and Cariboo; th e results (if any) of further
exploration work to define and expand mineral resources; the ability of exploration work (including drilling) to accurately p redict
mineralization; the ability to generate additional drill targets; the ability of management to understand the geology and potential of
the Company's properties; the ability of the Company to expand mineral resources beyond current mineral resource estimates; t he
timing and ability of the Company to complete upgrades to the mining and mill infrastructure at Trixie (if at all); continuation of test
mining activities at Trixie (if at all); the timing and ability of the Company to ramp up processing capacity at Trixie (if a t all); the
ability of the Company to complete its exploration and development objectives for its projects in the timing contemplated and within
expected costs (if at all); the ongoing advancement of the deposits on the Company's properties; the deposit remaining open for
expansion at depth and down plunge; the ability to realize upon any mineralization in a manner that is economic; the Cariboo project
design and ability and timing to complete infrastructure at Cariboo (if at all); the ability and timing for Cariboo to reach commercial
production (if at all); the ability to adapt to cha nges in gold prices, estimates of costs, estimates of planned exploration and
development expenditures; the ability of the Company to obtain further capital on reasonable terms; the profitability (if at all) of
the Company's operations; the Company being a well-positioned gold development company in Canada, USA and Mexico; the ability
and timing for the permitting at San Antonio; the impact of permitting delays at San Antonio; the outcome of the strategic review
of the San Antonio Project; sustainability and environmental impacts of operations at the Company's properties; the ability and
timing of the Company to mutually agree with Condire to a board nominee or observer and impact of same; as well as other
considerations that are believed to be appropriate in the circumstances, and any other information herein that is not a historical fact
may be "forward looking information". Material assumptions also include, management's perceptions of historical trends, the a bility
of exploration (including drilling and chip sampling assays, and face sampling ) to accurately predict mineralization, budget
constraints and access to capital on terms acceptable to the Company, current conditions and expected future developments,
regulatory framework remaining defined and under stood, results of further exploration work to define or expand any mineral
resources, as well as other considerations that are believed to be appropriate in the circumstances. Osisko Development consi ders
its assumptions to be reasonable based on information currently available, but cautions the reader that their assumptions regarding
future events, many of which are beyond the control of Osisko Development, may ultimately prove to be incorrect since they ar e
subject to risks and uncertainties that affect O sisko Development and its business. Such risks and uncertainties include, among
others, risks relating to capital market conditions and the Company's ability to access capital on terms acceptable to the Co mpany
for the contemplated exploration and developm ent at the Company's properties; the ability to continue current operations and
exploration; regulatory framework and presence of laws and regulations that may impose restrictions on mining; the ability of
exploration activities (including drill results and chip sampling, and face sampling results) to accurately predict mineralization; errors
in management's geological modelling; the ability to expand operations or complete further exploration activities; the timing and
ability of the Company to obtain required approvals and permits; the results of exploration activities; risks relating to exploration,
development and mining activities; the global economic climate; metal and commodity prices; fluctuations in the currency markets;
dilution; environmental risks; and community, non-governmental and governmental actions and the impact of stakeholder actions.
Readers are urged to consult the disclosure provided under the heading "Risk Factors" in the Company's annual information for m
for the year ended December 31, 2023 as well as the financial statements and MD&A for the year ended December 31, 2023, which
have been filed on SEDAR+ ( www.sedarplus.ca) under Osisko Development's issuer profile and on the SEC's EDGAR website
(www.sec.gov), for further information regarding the risks and other factors facing the Company, its business and operations .
Although the Company's believes the expectations conveyed by the forward-looking statements are reasonable based on information
available as of the date hereof, no assurances can be given as to future results, levels of activity and achievements. The Co mpany
disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results
or otherwise, except as required by law. Forward -looking statements are not guarantees of performance and there can be no
assurance that these forward-looking statements will prove to be accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward -looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange,
securities commission or other regulatory authority has approved or disapproved the information contained herein.