Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
On the back of a gold price rally, Osisko Mining (OSK.TO) has announced a C$150-million bought deal private placement, one of the largest such raises in recent years.
The company has entered into an agreement with Canaccord Genuity and Eight Capital as co-lead underwriters of a syndicate, which has agreed to purchase, on a bought-deal private placement basis, 41.1 million units of the company at C$3.65 each for gross proceeds of C$150 million.
Each unit consists of one share and half of a warrant. The underwriters will also have the option to purchase up to an additional 7.4 million units for potential proceeds of up to C$27 million up to 48 hours prior to closing, which is expected around Jun. 23.
Net proceeds of the offering are intended for the company’s mineral assets in Quebec, as well as for working capital and corporate purposes.
This year, Osisko plans to drill 250,000 metres at Windfall, which will include both infill and expansion drilling as well as testing of regional targets
Osisko Mining’s principal asset is its wholly-owned Windfall Lake gold project, between Val-d’Or and Chibougamau in Quebec.
The company also holds over 2,700 sq. km of ground in the surrounding Urban Barry and Quevillon areas. In February, the company announced an updated resource for Windfall Lake, reporting indicated resources of 4.1 million tonnes at 9.1 g/t gold with a further 14.5 million inferred tonnes at 8.4 g/t for a total of 5.1 million oz. across all resource categories.
An underground bulk sample extracted from the project at the end of last year came in ahead of company expectations, with head grades averaging 17.8 g/t gold.
This year, Osisko plans to drill 250,000 metres at Windfall, which will include both infill and expansion drilling as well as testing of regional targets.
Osisko’s stock was up 0.77% on the TSE on Monday afternoon. The company has a C$1.14 billion market capitalization.
(This article first appeared in the Canadian Mining Journal)
Comments
Walter Brian Carter
Why can’t you allow a Canadian address to be entered in the request for the book on gold?