Osisko Development has entered into an amending agreement to the credit agreement National Bank of Canada made as of March 1, 2024, providing for a $50 million delayed draw term loan, through its wholly-owned subsidiary, Barkerville Gold Mines.
The amendment provides for, among other things:
- An 8-month extension to the maturity date of the credit facility to October 31, 2025 (from March 1, 2025). The extension is subject to the company completing a capital raise of at least $20 million prior to October 31, 2024, otherwise the maturity date reverts to February 28, 2025.
- Reduction in the mandatory prepayment amount to 50% of each incremental dollar raised in excess of $25 million in respect of certain financings, allowing the company to preserve 50% of such proceeds. There are no mandatory prepayment requirements for amounts up to $25 million. There are no other material changes to the term of the credit facility.
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“The amendment of the credit facility provides us with additional financial flexibility as we continue to advance the Cariboo Gold project to shovel ready status, with permits expected in the Q3 2024 and explore opportunities to execute on our growth strategy,” Sean Roosen, chairman and CEO of Osisko Development, said.
In connection with the amendment, the company has agreed to pay the lender an upfront fee equal to approximately $670,000 and duration fees in a range of 1.5% to 2.0% of the total commitment amount.
