Osisko Metals closes $32.5 million private placement with major miners

Osisko Metals Incorporated (TSX: OM) completed a $32.5 million private placement with four strategic investors, issuing 67.7 million common shares at $0.48 per share, according to a company statement.

The investors included Hudbay Minerals Inc., which purchased 29.2 million shares for $14 million, and Agnico Eagle Mines Limited, which bought 26 million shares for $12.5 million. Franco-Nevada Corporation acquired 4.2 million shares for $2 million, while Caisse de dépôt et placement du Québec purchased 8.3 million shares for $4 million.

Following the transaction, Hudbay owns approximately 4.3% of Osisko Metals' outstanding shares on a non-diluted basis. Agnico Eagle's holdings, including existing warrants, represent 9.85% on a non-diluted basis and 12.49% on a partially-diluted basis.

The company entered into an investor rights agreement with Hudbay, granting certain rights including participation in future offerings and potential board representation when ownership thresholds are met. Osisko Metals also amended its existing agreement with Agnico Eagle to permit the increased ownership stake.

The proceeds will fund advancement of the company's Gaspé Copper project, including drilling, permitting and technical studies, plus general corporate purposes. The private placement requires final approval from the Toronto Stock Exchange.

Osisko Metals owns the Gaspé Copper project in Quebec, which has indicated mineral resources of 824 million tonnes grading 0.34% copper equivalent and inferred resources of 670 million tonnes grading 0.38% copper equivalent.

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