Osisko Mining (TSX: OSK) has signed an agreement with Australia’s Northern Star Resources (ASX: NST) to raise $154 million for continued work on its Windfall gold project 200 km north of Val d’Or, Que. The two companies have also agreed to negotiate the terms of an earn-in and joint venture allowing Northern Star to earn up to a 50% interest in the Windfall project.
The financing agreement will see Osisko issuing a convertible senior unsecured debenture due Dec. 1, 2025, to Northern Star. The debenture bears an interest rate of 4.75% per year payable semi-annually.
“The potential of joining forces with Northern Star, a well-respected gold producer with a depth of experience in mining underground high-grade deposits similar to the Windfall project, would help de-risk the remaining work ahead to bring the Windfall project to successful production,” Osisko chairman and CEO John Burzynski said in a release.
“We are confident that, subject to reaching an agreement with Northern Star on the earn-in joint venture terms, they will be a very strong partner in assuring our development plans for the Windfall project.”