Osisko Development Corp.

Osisko Development Corp. is a junior gold development company headquartered in Montreal, Canada, operating primarily in Canada. The company's portfolio consists of 3 projects, comprising 2 development and 1 suspended project. Key assets include Cariboo. The organization operates as an exploration and development company focused on advancing past-producing properties toward production. Its business model is centered on curating and progressing a portfolio of development projects with the objective of becoming an intermediate producer. The operational approach emphasizes a staged, lower capital intensity project design featuring scalable infrastructure to mitigate development risks and manage capital deployment in response to economic conditions. This methodology provides an opportunity to maximize margins while systematically advancing assets. The company has experience with various processing technologies, including heap leaching and carbon-in-column plants, as well as test mining and batch vat leaching, demonstrating adaptability to different mineralization types. As a development-stage entity without commercial production, the business model relies on securing external equity and debt financing to fund its evaluation and development activities, making capital market access a critical component of its operational cycle.

Strategic focus centers on transitioning from a developer to an intermediate producer through the advancement of its principal assets. A key component of this strategy involves completing an optimized feasibility study for a core project to enhance and streamline mine development, accelerate throughput timelines, and mitigate potential cost pressures. The capital allocation strategy is multifaceted, relying on securing future financing through a combination of asset sales, divestment of portfolio investments, project debt, offtake or royalty financing, and other capital market alternatives. Management has initiated a strategic review of a non-core asset, which includes exploring partnerships or a full or partial sale to generate liquidity. Near-term objectives include completing detailed engineering for critical infrastructure and securing a comprehensive project construction financing package. The enterprise's ability to execute its planned activities is contingent upon its success in these financing efforts, which may otherwise lead to the curtailment of certain development activities.

Executive leadership is headed by a Chief Executive Officer who also serves as the Chair of the Board of Directors. The Board is composed of 6 members, including a Lead Director and a recently appointed independent director. Governance and oversight are exercised through an Audit and Risk Committee, which meets quarterly with management and independent auditors to review financial reporting and internal controls before Board approval. Management structure has seen recent adjustments, including the appointment of a new Vice President of Project Development and a Vice President of Investor Relations, alongside the resignation of the Chief Operating Officer, reflecting an active approach to aligning leadership with corporate priorities. The CEO and CFO are responsible for establishing and maintaining internal controls over financial reporting (ICFR) and have formally evaluated these systems as effective, based on the COSO framework. This structured approach to governance underscores a commitment to reliable financial reporting and procedural integrity.

The sustainability framework is built on 3 pillars: being a good neighbor, maintaining an engaged workforce, and ensuring environmental stewardship. The company actively fosters relationships with First Nations, formalized through engagement protocols, relationship agreements, and life-of-project agreements. A key partnership includes a collaboration agreement for the reclamation of a legacy mining site. Community engagement extends to a sustainable workforce initiative providing underground miner training to support local employment and funding for local organizations. Environmental initiatives include the installation of a water treatment plant to manage contact water and effluent, the implementation of management plans for water and waste, and the development of a stewardship society focused on the recovery of local caribou populations and salmon runs. The organization also maintains open dialogue with regulatory bodies to ensure positive relations and compliance with environmental standards.

The company was formed on November 25, 2020, through the contribution of assets from Osisko Gold Royalties Ltd. Its principal assets are held through wholly-owned operational subsidiaries, including Barkerville Gold Mines Ltd. and Tintic Consolidated Metals LLC. A significant structural transaction occurred in 2022 with the acquisition of a new project, which involved purchasing a 75% interest from IG Tintic and acquiring all stock of Chief Consolidated Mining Company, which was subsequently merged into a subsidiary. The corporate structure also includes a significant investment in Falco Resources Limited, representing a 16.0% ownership stake, which is accounted for as an associate investment due to the exercise of significant influence. In 2022, the company entered into a binding term sheet with Osisko Bermuda Limited for a stream agreement on metals produced from one of its projects, securing cash consideration in exchange for a percentage of future production.