Osisko Closes $600 Million Cariboo Bond Sale; $120 Million Trafigura Facility Still Pending

Osisko Gold Group has completed its US$600 million senior secured bond sale for the Cariboo Gold Project, replacing the conditional pricing announcement with a closed financing transaction. The 9.25% notes, due October 2031, were issued September 30 and generated approximately US$578 million after discounts, commissions and estimated expenses. The company used about US$120.8 million to retire its Appian credit facility, reserved the first five note interest payments and placed the balance into a restricted project disbursement account. 123

At a 9.25% coupon, the notes imply US$55.5 million of annual interest on their US$600 million principal amount. The dedicated interest reserve helps fund early coupon payments, but does not eliminate the financing cost or construction execution risk. Cash raised through secured debt is not equivalent to unrestricted liquidity available for construction: loan repayment, fees and debt-service reserves reduce the amount that can be drawn for the mine. 23

Another element of the capital plan also moved forward on October 9. An affiliate of Trafigura invested approximately US$30 million in Osisko through the purchase of 9,554,141 common shares at US$3.14 apiece. Osisko said the proceeds would support development of Cariboo. Yet negotiations over a separate potential prepayment facility of up to US$120 million were still ongoing. The completed equity subscription must not be confused with that uncommitted facility. 4

The distinction matters for financing headroom. Osisko's September 30 sources-and-uses presentation included the potential Trafigura prepayment in a projected surplus of approximately US$156 million through anticipated commercial production in the second half of 2029. Holding every other assumption constant, removing an unexecuted US$120 million source would reduce that indicative cushion to roughly US$36 million. This is a sensitivity calculation, not a company forecast, and actual spending, funding timing and any replacement capital could differ. 3

For equity holders, the key issue is no longer whether the bond offering will close: it has. The focus shifts to construction cash drawdowns, the timing and conditions of the prepayment agreement, and whether contingency remains adequate as underground development and processing infrastructure advance. The bond transaction improves financing certainty but also places secured claims and fixed interest obligations ahead of common shareholders. 34

This financing update is distinct from Osisko's earlier formal Cariboo construction decision. It establishes which capital has actually been raised and which proposed funding component remains contingent. The next material disclosure is a definitive Trafigura prepayment agreement or an updated project financing and construction-cost forecast. 34