Osisko lands $450M loan for Cariboo gold project

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Osisko Development (TSXV, NYSE: ODV) has secured a $450 million loan from Appian Capital Advisory to advance construction of the Cariboo gold project in central British Columbia.

The senior secured credit facility will help finance pre-construction and early works on the fully permitted project, the company said Monday. The amount covers more than half of the estimated upfront capital cost of C$881 million in an updated feasibility study released in April. Construction is expected to start in this quarter, with first gold production targeted for the second half of 2027.

“We are delighted to welcome Appian as a new cornerstone investor, which is a significant endorsement of the Cariboo gold project,” Osisko chairman and CEO Sean Roosen said in a release. “The $450 million facility represents a key financing commitment and allows us to maintain momentum towards a formal investment decision.”

London-based Appian’s founder and CEO Michael Scherb said the project fits the firm’s disciplined, technically driven investment strategy. He cited Cariboo’s location in a stable jurisdiction, existing permits and strong mineral base with upside potential.

Shares in Osisko Development gained 4.8% on Monday in Toronto to C$3.53 apiece, valuing the company at C$465 million.

Legacy builder

Located near Quesnel in the historic Wells-Barkerville mining district, Cariboo represents a flagship asset for Osisko and part of a broader legacy that Roosen has built across the Canadian mining sector. His goal is to build Cariboo into Canada’s next major gold operation, and this financing marks a critical step in that process.

The mining executive helped lead the discovery and development of Canadian Malartic, now one of the largest gold mines in the country, and has overseen projects that have generated more than $14 billion in value.

Osisko has completed an initial draw of $100 million from the new loan and plans to use the funds for a 13,000-metre infill drill program, site preparation and development activities, repayment of a $25 million term loan from National Bank of Canada due in October 2025, and working capital.

The project’s after-tax net present value (NPV) increased to C$943 million, using a 5% discount rate and a base gold price of $2,400 per oz., according to the updated feasibility study. That marked an 88% jump from the previous study in 2023. Initial capital cost rose by about a third.

190K oz. per year

The study forecasts average annual gold production of about 190,000 oz. over a 12-year mine life, including 202,000 oz. annually in the first five years. Total life-of-mine production is estimated at 1.9 million ounces of gold.

Osisko proposes a simplified processing circuit with improved gold recovery of 92.6% using gravity and flotation. The all-in sustaining cost is estimated at $1,157 per oz., with total cash costs of $947 per oz. The after-tax internal rate of return (IRR) is 22% with a payback period of 2.8 years.

At a spot gold price of about $3,300 per oz., the project’s economics become even more attractive, with the NPV rising to approximately C$2.1 billion and the IRR climbing to 38%.

The project already has key permits in place, including its environmental assessment certificate and major mines permit, positioning Osisko to move quickly into development. With Appian’s backing and feasibility metrics now aligned with a robust gold price environment, the company aims to finalize a construction decision in the coming months.