Osisko Mining arranges C$154M convertible debenture placement with Northern Star

Osisko Mining Inc. signed an agreement for a C$154 million private placement in a convertible senior unsecured debenture due Dec. 1, 2025, with Northern Star Resources Ltd.

Osisko also agreed to negotiate the terms of a potential earn-in and joint venture agreement that would grant Northern Star an option to acquire up to 50% of Osisko's Windfall gold project in Quebec, the company said in a Nov. 30 news release.

The debenture bears an interest rate of 4.75% per annum payable semiannually in arrears and may be converted by Northern Star at C$4.00 per Osisko share after the first anniversary of closing.

Upon entering into the earn-in and joint venture agreement, Northern Star may convert the debenture into a stake in the project at a conversion premium of 125%. Osisko may redeem the debenture for cash or shares after the second anniversary of closing.

Osisko said it will use the proceeds of the debenture to advance Windfall and for general corporate purposes.