Osisko Metals Announces Closing of C$ 107.4 Million "Bought Deal" Private Placement
OSISKO METALS ANNOUNCES CLOSING OF C$ 107.4 MILLION "BOUGHT
DEAL" PRIVATE PLACEMENT
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES
(Montréal, Québec — December 11 , 2024) Osisko Metals Incorporated (the " Company" or
"Osisko Metals") (TSX-V: OM; OTCQX: OMZNF; FRANKFURT: OB51) is pleased to announce
that it has closed its previously-announced "bought deal" brokered private placement offering (the
"Offering") for aggregate gross proceeds of C$107.4 million, including the partial exercise the
option granted to the Underwriters (as defined herein) . In connection with the Offering, the
Company issued an aggregate of (i) 70,326,229 flow-through units of the Company ("FT Units")
consisting of 64,215,117 FT Units at an issue price of C$0.50 per FT Unit and 6,111,112 FT Units
at an issue price of C$0.54 per FT Unit , for aggregate gross proceeds of C$35,407,558.98 and
(ii) 277,051,466 units of the Company ("HD Units") at a price of C$0.26 per HD Unit, for aggregate
gross proceeds of C$72,033,381.16.
Each FT Unit is comprised of one common share of the C ompany (each, a "Common Share")
and one-half of one C ommon Share purchase warrant of the C ompany (each whole warrant, a
"Warrant"), each of which qualifies as a "flow-through share" (within the meaning of subsection
66(15) of the Income Tax Act (Canada) and 359.1 of the Taxation Act (Québec)). Each HD Unit
consists of one Common Share and one- half of one Warrant. Each Warrant entitles the holder
thereof to acquire one Common Share (each, a "Warrant Share") at a price of C$0.35 per Warrant
Share for a period of two years following the closing date of the Offering.
The Company intends to use the net proceeds from the HD Units towards the advancement of
Company’s assets in Québec and the Northwest Territories, including the advancement of the
Gaspé Copper project to a construction decision, and for general corporate purposes. The gross
proceeds from the FT Units will be used by the Company to incur eligible "Canadian exploration
expenses" that qualify as "flow -through critical mineral mining expenditures" (as both terms are
defined in the Income Tax Act (Canada)) (the " Qualifying Expenditures") related to the
Company's projects i n Québec. All Qualifying Expenditures will be renounced in favour of the
subscribers with an effective date no later than December 31, 2024. In addition, with respect to
subscribers who are eligible individuals under the Taxation Act (Québec), the Qualifying
Expenditures will also qualify for inclusion in the "exploration base relating to certain Québec
exploration expenses" within the meaning of section 726.4.10 of the Taxation Act (Québec) and
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for inclusion in the "exploration base relating to certain Québec surface mining exploration
expenses" within the meaning of section 726.4.17.2 of the Taxation Act (Québec).
The Offering was led by Canaccord Genuity Corp. as sole bookrunner together with BMO Nesbitt
Burns Inc. and National Bank Financial, as lead underwriters, for and on behalf of a syndicate of
underwriters that included Scotia Capital Inc., CIBC World Markets Inc., RBC Dominion Securities
Inc. and TD Securities Inc. (collectively, the "Underwriters"). In consideration for their services,
the Underwriters were paid a cash commission equal to 5% of the gross proceeds of the Offering.
All securities issued under the Offering are subject to a hold period expiring four months and one
day from the date hereof. The Offering remains subject to final acceptance of the TSX Venture
Exchange.
Certain directors and officers of the Company subscribed for an aggregate 3,464,931 HD Units
for aggregate gross proceeds of $900,882.06. Each director and officer of the Company is
considered an "insider" of the Company and, as a result, their participation under the Offering is
considered to be a "related party transaction" for the purposes of Multilateral Instrument 61 -101
– Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is
relying on exemptions from the formal valuation and minority shareholder approval requirements
available under MI 61- 101. The Company is exempt from the formal valuation requirement in
section 5.4 of MI 61-101 in reliance on section 5.5(a) of MI 61-101 as the fair market value of the
transaction, insofar as it involves insiders , is not more than 25% of the Company 's market
capitalization. Additionally, the Company is exempt from minority shareholder approval
requirement in section 5.6 of MI 61 -101 in reliance on section 5.7(1) (a) of MI 61-101 as the fair
market value of the transaction, insofar as it involves insiders, is not more than 25% of the
Company's market capitalization. The Company did not file the material change report more than
21 days before the expected closing date of the Offering as the details of the Offering and the
participation of insiders therein was not settled until shortly prior to the closing of the Offering, and
the Company wished to close the Offering on an expedited basis for sound business reasons.
Certain incoming directors and officers of the Company have also subscribed for an aggregate of
11,208,144 HD Units under the Offering for an aggregate gross proceeds of $2,914,177.
The securities offered have not been registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements. This news release shal l not
constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale
of the securities in any State in which such offer, solicitation or sale would be unlawful.
Investor Rights Agreement
Concurrently with the closing of the Offering, the Company and a strategic investor (the "Strategic
Investor") entered into an investor rights agreement, pursuant to which the Strategic Investor has
been granted certain rights, including the right to board representation in certain circumstances,
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the right to participate in future offerings of securities of the Company, and top-up rights, in each
case subject to certain minimum ownership thresholds and certain other conditions.
Qualified Person
The scientific and technical information included in this news release has been reviewed and
approved by Mr. Jeff Hussey, a director of the Company, and a "qualified person" within the
meaning of National Instrument 43 -101 – Standards of Disclosure for Mineral Projects ("NI 43-
101").
About Osisko Metals
Osisko Metals Incorporated is a Canadian exploration and development company creating value
in the critical metals sector, with a focus on copper and zinc. The Company acquired a 100%
interest in the past-producing Gaspé Copper mine from Glencore Canada Corporation in July
2023. The Gaspé Copper mine is located near Murdochville in Québec's Gaspé Peninsula. The
Company is currently focused on resource expansion of the Gaspé Copper system, with current
Indicated Mineral Resources of 824 Mt grading 0.34% CuEq and Inferred Mineral Resources
of 670 Mt grading 0.38% CuEq (in compliance with NI 43-101). For more information, see Osisko
Metals' November 14, 2024 news release entitled "Osisko Metals Announces Significant Increase
in Mineral Resource at Gaspé Copper". Gaspé Copper hosts the largest undeveloped copper
resource in eastern North America, strategically located near existing infrastructure in the mining-
friendly province of Québec.
In addition to the Gaspé Copper project, the Company is working with Appian Capital Advisory
LLP through the Pine Point Mining Limited joint venture to advance one of Canada's largest past-
producing zinc mining camps, the Pine Point project, located in the Northwest Territories. The
current mineral resource estimate for the Pine Point project consists of Indicated Mineral
Resources of 49.5 Mt at 5.52% ZnEq and Inferred Mineral Resources of 8.3 Mt at 5.64%
ZnEq (in compliance with NI 43- 101). For more inform ation, see Osisko Metals ' June 25, 2024
news release entitled "Osisko Metals releases Pine Point mineral resource estimate: 49.5 million
tonnes of indicated resources at 5.52% ZnEq" . The Pine Point project is located on the south
shore of Great Slave Lake, Northwest Territories, close to infrastructure, with paved road access,
an electrical substation and 100 kilometers of viable haul roads.
For further information on this news release, visit www.osiskometals.com or contact:
Robert Wares, Chief Executive Officer of Osisko Metals Incorporated
Email: [email protected]
Cautionary Statement on Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation based
on expectations, estimates and projections as at the date of this news release. Any statement that involves predictions,
expectations, interpretations, beliefs, plans projections, objectives, assumptions, future events or performance (often, but not
always, using phrases such as "expects", or "does not expect", "is expected", "interpreted", management's view", "anticipates" or
"does not anticipate ", "plans", "budget", "scheduled", "forecasts", "estimates", "potential", "feasibility", "believes" or "intends"
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or variations of such words and phrases or stating that certain actions, events or results " may" or "could", "would", "might" or
"will" be taken, occur or be achieved) are not statements of historical fact and may be forward- looking information and are
intended to identify forward-looking information. This news release contains forward- looking information pertaining to, among
other things: the ability for the Company to obtain the final approval of the TSX Venture Exchange; the anticipated use of proceeds
of the Offering; the tax treatment of the FT Units; the timing of incurring the Qualifying Expenditures and the renunciation of the
Qualifying Expenditures; the ability to advance Gaspé Copper to a construction decision (if at all); the ability to increase the
Company's trading liquidity and enhance its capital markets presence; the potential re -rating of the Company; the ability for the
Company to unlock the full potential of its assets and achieve success; the ability for the Company to create value for its
shareholders; the advancement of the Pine Point project; the anticipated resource expansion of the Gaspé Copper system ; and
Gaspé Copper hosting the largest undeveloped copper resource in eastern North America.
Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions
of management, in light of management's experience and perception of trends, current conditions and expected developments,
as well as other factors that management believes to be relevant and reasonable in the circumstances, including, without
limitation, assumptions about: the ability of exploration results, including drilling, to accurately predict mineralization; errors in
geological modelling; insufficient data; equity and debt capital markets; future spot prices of copper and zinc; the timing and
results of exploration and drilling programs; the accuracy of mineral resource estimates; production costs; political and regulatory
stability; the receipt of governmental and third party approvals; licenses and permits being received on favourable terms;
sustained labour stability; stability in financial and capital markets; availability of mining equipment and positive relatio ns with
local communities and groups. Forward-looking information involves risks, uncertainties and other factors that could cause actual
events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forwar d-
looking information. Factors that could cause actual results to differ materially from such forward-looking information are set out
in the Company's public disclosure record on SEDAR+ (www.sedarplus.ca) under Osisko Metals' issuer profile. Although the
Company believes that the assumptions and factors used in preparing the forward- looking information in this news release are
reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and
no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention
or obligation to update or revise any forward- looking information, whether as a result of new information, future events or
otherwise, other than as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accept 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.