Osisko Development’s Cariboo Gold Project has received significant funding that will advance its construction.
Osisko announced on Monday, July 21, that it has secured a US$450 million loan from Appian Capital Advisory Limited that will support the mine near Wells and Barkville’s development and construction.
“We are delighted to welcome Appian as a new cornerstone investor, which is a significant endorsement of the Cariboo Gold Project and a major milestone in advancing it towards a construction decision,” Osisko’s Chairman and CEO, Sean Roosen, said in a statement.
“Having recently completed an updated feasibility study for the [Cariboo Gold] Project, the US$450 million facility represents a key financing commitment and allows us to maintain momentum towards a formal investment decision.”
Osisko said it has completed an initial draw of US$100 million, which will fund a 13,000 metre infill drill program, aiming to further de-risk the project’s mine planning assumptions, as well as fund pre-construction and construction activities.
The initial draw will also repay Osisko’s US$25 million term loan the company has with the National Bank of Canada, and support the Cariboo Gold Project’s general working capital requirements.
“The Cariboo Gold Project perfectly aligns with Appian’s disciplined, technically driven investment strategy, said Michael Scherb, Founder and CEO of Appian Capital in July 21’s statement.
“It is situated in a stable jurisdiction, boasts a robust existing mineral base with clear upside potential, and is being led by an experienced management team.”
While the investment from Appian is significant and is “an important step forward” for Osisko. A formal decision by the company’s Board of Directors to start construction on the Cariboo Gold Project has not yet been made.
The remaining US$350 million will be available following a final construction decision. The remaining loan will be drawn in four subsequent draws and will be available for up to 36 months after the close of the initial draw, according to Osisko.
According to Osisko’s 2025 Feasibility Study, the total initial capital cost of the Cariboo Gold Project is approximately CAD$881 million.
The mine is expected to employ more than 600 workers during its construction phase.
Osisko said it hopes to be completed construction on the Cariboo Gold Project by 2027.
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