The Cariboo Gold Project near Wells, B.C., has received major funding to advance its construction.
Montreal-based Osisko Development Corp. (TSXV, NYSE: ODV) announced Monday that it has secured a US$450-million loan from Appian Capital Advisory Limited to support the project'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," said Sean Roosen, chairman and CEO of Osisko, in a Monday statement.
"Having recently completed an updated feasibility study for the project, the US$450-million facility represents a key financing commitment and allows us to maintain momentum towards a formal investment decision."
The company said it has completed an initial draw of US$100 million, which will fund a 13,000-metre infill drill program aimed at further de-risking the project’s mine planning assumptions, as well as pre-construction and construction activities.
The funds will also help repay Osisko's outstanding US$25-million loan with National Bank of Canada and support the project's general working capital requirements.
The remaining US$350 million, to be drawn in up to four subsequent tranches, will be available for up to 36 months after the close of the initial draw, according to the company.
“The Cariboo Gold Project perfectly aligns with Appian's disciplined, technically driven investment strategy,” said Michael Scherb, founder and CEO of Appian, in a statement.
“It is situated in a stable jurisdiction, boasts a robust existing minerals base with clear upside potential, and is being led by an experienced management team. The project also holds permits that will enable near-term progress to production.”
The Cariboo Gold Project received the green light from the B.C. government with an operating permit under the Environmental Management Act in December, and a Mines Act permit granted in November 2024.
It was the first project to be fully assessed under the new Environmental Assessment Act, updated in 2018, according to the province.
The project has received approval from the Lhtako Dené Nation and the Williams Lake First Nation. However, the Xatśūll First Nation has called on the government and the company to halt the project until their concerns are addressed and consent is granted.
The underground mine is expected to employ more than 600 workers during the construction phase and generate nearly $1.1 billion in investment over its expected 16-year lifespan.
Osisko said it hopes to complete construction by 2027.
— With files from Nelson Bennett, BIV
