Osisko Gold Group Inc. has entered into an amended and restated credit agreement with funds advised by Appian Capital Advisory Limited in respect of its US$450 million senior secured project loan credit facility. The facility was established by the company's wholly owned subsidiary, Barkerville Gold Mines Ltd., to finance the development and construction of the 100%-owned, fully permitted Cariboo Gold Project in central British Columbia, Canada.

The amended agreement alters the facility's terms by reducing interest rate margins and extending the company's option to settle accrued interest in kind by an additional 12 months. Specifically, the interest rate margin for the initial draw drops to the 3-month Secured Overnight Financing Rate plus 9.00% per annum, down from 9.50% with the 0.10% per annum SOFR adjustment eliminated. For the second draw and thereafter, the margin decreases to SOFR plus 7.25% per annum from 7.50%.

In practical terms, Appian has confirmed the satisfaction of key technical conditions precedent for the remaining undrawn US$350 million under the facility following a review of results from the Lowhee Zone infill drilling and ore sorting programs. These technical conditions have now been removed from the credit agreement. The second draw of US$350 million remains subject to remaining conditions precedent associated with ongoing construction readiness activities, including detailed engineering, procurement, updated project costs, and the project schedule.

“The amended terms of this credit facility provide us with meaningful financial flexibility as we advance the Cariboo Gold Project toward construction readiness. Appian's confirmation that the key technical conditions precedent have been satisfied, including those related to the completed Lowhee infill drilling and ore sorting programs, represents an important validation of the quality of this deposit and the significant de-risking work our team has completed. With the improved economics under the Amendment and US$350 million of additional capital now substantially de-risked, we are well positioned to continue advancing toward our next major development milestones. We thank Appian for its continued partnership and look forward to working together through the next phase of development at Cariboo.”

— Sean Roosen, Chairman and CEO

Osisko Gold Group is continuing to advance these construction readiness activities and de-risking initiatives as it moves the flagship property toward its next major development milestones.

Read the full announcement: Osisko Gold Announces Amendment to US$450 Million Appian Credit Facility and Satisfaction of Key Technical Conditions Precedent Following Successful Completion of the Lowhee Infill Drill Program at the Cariboo Gold Project