Osisko Metals Incorporated (TSXV: OM | OTCQX: OMZNF | FRANKFURT: 0B51) has announced the expansion of its leadership team along with a C$100M bought deal financing as the company accelerates its strategy of creating a leading critical metals company in North America.
John Burzynski will be appointed to the board of directors of the company as executive chairman and will lead the company along with Robert Wares, who will continue as CEO and a director on the board.
Also, Don Njegovan and Blair Zaritsky will be appointed as president and CFO of the company, respectively. Additionally, Luc Lessard, a director of the company since 2019, will step down from the board and Anthony Glavac will step down as CFO. Mr. Lessard will remain as technical advisor to the board.
In conjunction with the transaction, the company has entered into an agreement with Canaccord Genuity Corp. as sole bookrunner and co-lead underwriter together with BMO Capital Markets and National Bank Financial for a syndicate of underwriters, pursuant to which the underwriters have agreed to purchase, subject to certain conditions, 288,465,000 units of the company at a price of C$0.26 per HD unit for gross proceeds of C$75M, and 50,000,000 flow-through units of the company at a price of C$0.50 per FT unit for gross proceeds of C$25M. The aggregate gross proceeds from issuance of HD units and FT units will be approximately C$100M.
The company has also granted the underwriters an option, exercisable in whole or in part, at any time up to the closing date of the transaction, to acquire up to an additional C$15M in any combination of HD Units and FT Units.
Osisko will use the proceeds of the transaction towards the advancement of its 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 mining expenditures” related to the company’s projects in Québec.
To find out more, please visit www.osiskometals.com
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