Monday, September 15, 2025

Latest

Osisko Development To Acquire Operating Gold Mine

Osisko Development Corp (TSXV: ODV) is well on its way to becoming a gold producer with its latest acquisition. The firm this morning announced it will be acquiring Tintic Consolidated Metals, which will transition the firm from a developer to a gold producer.

The transaction will see the company pay a total of US177 million in initial consideration in the form of cash and shares. Of the total figure US$54 million is to be paid in cash, while 35.1 million common shares are to be issued at $4.32 per share for total share consideration of US$123 million.

The transaction will also additional payments of US$12.5 million paid annually over five years in cash or shares, two 1% NSR grants, the set off of a $5.0 million loan, the payment of a 10% NSR on any stockpiled material still on site, and a final $10 million contingent payment should the Burgin Mine commence production.

The acquisition consists of the Trixie Mine, which produces 20,000 ounces per annum on average, as well as mineral claims that cover 17,000 acres in Central Utah. The company intends to expand production at the mine to 100,000 ounces per annum by 2024. The mine last year produced 14,709 ounces of gold at an average head grade of 59 g/t, with current samples collected underground point to average grades of 93 g/t gold and 135 g/t silver.

The purchase is being financed via a non-binding term sheet with Osisko Gold Royalties (TSX: OR), with the term sheet outlined an upfront cash payment between US$20 and $40 million. On the higher end of this range, a 5% stream of all metals produced would be provided to Osisko Gold, up to 53,400 ounces, after which a stream of 4.0% would be provided. This rate will be adjusted pro-rata with total funds drawn. Payment for the metals will equal 25% of spot. The streaming arrangement is anticipated to close concurrently with the purchase of the property.

The transaction is currently slated to close in the second quarter.

Osisko Development last traded at $4.39 on the TSX Venture.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Stone Gold Appoints John Timmons As CEO And President

Stone Gold (TSXV: STG) has a new head honcho. The company announced this morning that...

Monday, November 2, 2020, 09:30:11 AM

Condor Gold Drills 6.25 g/t Gold Over 8.1 Metres True Width At La India Starter Pits

Condor Gold (TSX: COG) today reported that all results have been received for forty-five diamond...

Monday, July 5, 2021, 10:41:00 AM

Trillium Gold Mines Appoints Rohan Hazelton As Senior Financial Advisor

Trillium Gold Mines (TSXV: TGM) continues to strengthen its team. The firm this morning announced...

Monday, February 8, 2021, 08:53:14 AM

BMO Reiterates $72 Price Target On Kirkland Lake Gold

Last week, Kirkland Lake Gold Ltd. (TSX: KL) announced their second quarter production figures. Results...

Wednesday, July 21, 2021, 11:20:00 AM

Republican Lawmakers Move To Peg US Dollar To Gold, But Is It Worth The Weight?

In arguably one of the worst economic situations in the US amid rising interest rate...

Thursday, April 6, 2023, 02:15:00 PM