Glencore Converts Debt to Equity, Cementing Stake in Osisko Metals

TORONTO, ON – July 13, 2026 – In a significant strategic move that reshapes the financial landscape of a promising Canadian mineral developer, Glencore Canada Corporation has converted its entire US$25 million senior secured convertible debenture in Osisko Metals Incorporated into a substantial equity holding. The transaction, which also includes over US$7.6 million in accrued interest, transforms the global commodities titan from a primary creditor into a major shareholder, giving it approximately 14.4% ownership of the critical metals company.

This conversion solidifies the strategic alliance between the two firms, significantly strengthening Osisko Metals' balance sheet as it advances two of Canada’s most important undeveloped copper and zinc projects. While the deal underscores Glencore's deepening commitment to securing future supplies of base metals vital for the global energy transition, the finalization of the share issuance remains subject to the approval of the Toronto Stock Exchange (TSX).

A Strategic Shift from Creditor to Shareholder

The transaction effectively closes a loop that began in July 2023. At that time, Osisko Metals acquired the past-producing Gaspé Copper mine in Québec from Glencore, financing the US$25 million upfront payment with the very convertible debenture that has now been exercised. This structure allowed Glencore to facilitate the asset sale while retaining a strategic financial interest that has now blossomed into a direct ownership stake.

According to the announcement, Glencore exercised its right to convert the US$25 million principal amount into 88,962,500 units of Osisko Metals at a pre-determined price of C$0.40 per unit. An additional US$7,617,438.72 in accrued interest was converted into 6,862,444 units at a price of C$1.58 per unit, reflecting the stock's closing price on the day before the conversion notice was delivered. Each unit comprises one common share and one-half of a common share purchase warrant.

Demonstrating further confidence, Glencore immediately exercised, on a cashless basis, all 44.5 million warrants received from the principal conversion. This move generated an additional 32.3 million common shares for Glencore, bringing its total holdings to 128,126,804 common shares. This complex series of transactions highlights a sophisticated financial arrangement designed to align the interests of both the global mining powerhouse and the agile developer. Glencore has stated the acquisition is for investment purposes, a standard declaration that nonetheless points to a long-term strategic view of Osisko Metals’ assets.

De-Risking the Balance Sheet to Fuel Development

For Osisko Metals, the conversion of over US$32 million in debt and interest into equity is a transformative financial event. By eliminating this significant liability, the company has substantially de-risked its financial profile, reducing its debt-to-equity ratio and freeing up future cash flow that would have been allocated to interest payments. This fortified balance sheet provides a much stronger foundation for securing the extensive project financing required to bring its assets into production.

"This is a massive vote of confidence that simultaneously cleans up the company's financial structure," noted one market analyst. "Having a partner like Glencore convert its debt to equity ahead of major development milestones tells the market that the biggest player in the room believes in the long-term value of these projects."

Osisko Metals is advancing two nationally significant projects. The Gaspé Copper project in Québec, now 100% owned by the company, is host to the largest undeveloped copper resource in eastern North America. In the Northwest Territories, its Pine Point project—a joint venture with Appian Capital Advisory—represents one of Canada’s largest past-producing zinc camps. The capital-intensive nature of mining development makes a strong balance sheet and a powerful strategic partner invaluable. This transaction delivers both, enhancing the company’s ability to fund ongoing exploration and feasibility studies, as evidenced by its recent C$15 million flow-through share financing in January 2026 and its uplisting to the senior board of the TSX in August 2025.

Glencore's Expanding Footprint in Canadian Critical Minerals

Glencore's decision to become a major shareholder is consistent with its global strategy to secure access to critical minerals essential for decarbonization. Copper is a cornerstone of electrification, from electric vehicles to renewable energy infrastructure, while zinc is vital for galvanizing steel to extend the life of that infrastructure. By embedding itself as a key owner in Osisko Metals, Glencore not only stands to benefit from the potential appreciation of its equity but also reinforces its relationship with a future producer.

The initial 2023 agreement for the Gaspé Copper mine included provisions for Glencore to retain a 100% offtake agreement for the concentrates produced, ensuring the output flows directly into its vast global trading network. This conversion deepens that integration. Furthermore, an investor rights agreement signed in July 2023 provides a formal framework for Glencore's influence. Such agreements typically grant significant shareholders rights that can include board representation and participation in future financing rounds, allowing Glencore to help steer the strategic direction of Osisko Metals to ensure the projects are developed efficiently and in alignment with its interests.

This model, where a global major nurtures a junior developer through strategic financing and technical partnership, is becoming a defining feature of the modern mining industry. It allows majors to gain exposure to promising new deposits without bearing the full early-stage exploration risk, while providing juniors with the capital and credibility needed to advance their projects.

Market Context and Future Outlook

The market has taken notice of Osisko Metals' progress, though its valuation still appears to lag behind analyst expectations. The company's stock has gained 19% year-to-date, but after a challenging prior year, its market capitalization stands at approximately $81 million. This figure contrasts sharply with analyst price targets, which range from $6 to $10 per share, suggesting a significant potential upside if the company can continue to de-risk its projects. Data from investment analysis platforms indicates the stock may be undervalued relative to its intrinsic asset value.

Glencore’s conversion serves as a powerful catalyst that could help close this valuation gap by drawing new institutional and retail investor attention. The elimination of debt removes a key uncertainty, and the implicit endorsement from a world-leading commodity firm provides a level of validation that is hard to ignore. While profitability is not expected in the immediate term for the pre-production company, the focus remains squarely on resource expansion and project development.

With the transaction awaiting only the final stamp of approval from the Toronto Stock Exchange, the partnership between Osisko Metals and Glencore is set to enter a new chapter, one that could play a pivotal role in developing Canada’s next generation of copper and zinc mines.