Roosen’s Osisko greenlights Cariboo gold project in BC

Canadian mining company Osisko Gold Group has given the green light for construction of the $841 million Cariboo gold mine in central British Columbia, with a projected first gold pour in early 2029. The project, which is 22% complete, is expected to generate $990 million in future capital obligations. Commercial production is anticipated to commence in the second half of 2029, following a 30-month construction period.

Osisko's final investment decision effectively transitions Cariboo from development to active construction, marking a significant de-risking milestone according to RBC Capital Markets mining analyst Harrison Reynolds. This move also eliminates concerns over timing, allowing the company to focus on ramping up construction efforts.

Sean Roosen, Osisko's chairman and CEO, emphasized the milestone's importance as part of his decade-long de-risking efforts on the project. The Cariboo mine is located in the historic Wells-Barkerville mining camp, approximately 500 km north of Vancouver. Osisko has secured a $30 million equity investment from Trafigura and a potential $120 million gold prepayment facility to finance the construction.

The prepayment facility will be available for use for three years post-closing, with a minimum maturity date of five years from closing. Osisko currently has about C$1.64 billion in available capital sources, including C$837 million in cash. After accounting for projected expenditures of C$1.44 billion, including capital obligations, exploration spending, debt service, and financing costs, the company is projected to have a surplus of approximately C$201 million.