Majors Bet $32.5M on Osisko's North American Copper Future

TORONTO, ON – December 03, 2025 – In a move that reverberates beyond a simple balance sheet entry, Osisko Metals has announced a private placement of approximately $32.5 million, drawing in a formidable syndicate of strategic investors. The transaction is less a standard capital raise and more a powerful endorsement of the company’s vision, particularly for its flagship Gaspé Copper project in Quebec. With industry giants Hudbay Minerals, Agnico Eagle Mines, and Franco-Nevada Corporation leading the investment, the deal signals a strategic alignment among major players to secure a foothold in one of Eastern North America’s most significant undeveloped copper resources.

This capital infusion, priced at $0.48 per share, is a story about conviction. It’s about established producers placing calculated bets on the next generation of supply in a world increasingly hungry for critical metals. The funds are earmarked to push the past-producing Gaspé Copper mine down the development path, advancing the drilling, permitting, and technical studies required to resurrect a dormant giant. As Osisko Metals CEO Robert Wares noted, "We view the participation in the private placement by these investors as support for the potential of the Gaspé Copper project." This support, however, is far more than just financial.

A Strategic Alliance Forged in Copper

The list of participants in this placement reads like a who's who of Canadian mining, and their motivations reveal a clear strategic calculus. Hudbay Minerals, a copper-focused producer, is making a new entry as a significant shareholder with a $14 million investment, securing an initial 4.3% stake. This move aligns perfectly with Hudbay's declared strategy of expanding its copper portfolio within top-tier mining jurisdictions. The investment is further cemented by an investor rights agreement, granting Hudbay top-up rights and the potential for board representation if its stake reaches 9.9%—a clear signal of a long-term partnership rather than a passive investment.

Agnico Eagle, already a major shareholder, is deepening its commitment by exercising a pre-existing participation right to invest nearly $12.5 million. This will boost its ownership to approximately 12.5% on a partially-diluted basis. For Agnico Eagle, a gold titan with deep operational roots in Quebec, this is a savvy diversification into copper. The move leverages its regional expertise and reinforces its strategy of consolidating interests in politically stable jurisdictions with immense geological potential. The investment builds on a history of familiarity with the well-regarded "Osisko" brand, stemming from the 2014 joint acquisition of the Canadian Malartic mine.

Rounding out the trio is Franco-Nevada, a royalty and streaming powerhouse, contributing $2 million. True to its business model, Franco-Nevada gains exposure to Gaspé Copper's future production without taking on direct operational risk. This participation underscores the project's perceived quality and economic potential from one of the industry's shrewdest financial players. Together, these investments form a powerful consortium, providing Osisko Metals not just with capital, but with unparalleled technical, operational, and market credibility.

Reviving a Quebec Giant: The Gaspé Copper Project

The capital from this placement is aimed squarely at advancing the Gaspé Copper project, a sprawling asset acquired from Glencore in 2023. Located on a brownfield site near Murdochville, Quebec, the project benefits from existing infrastructure, a significant advantage that reduces potential development timelines and capital costs. It’s not just any project; Osisko Metals touts it as the largest undeveloped copper resource in eastern North America.

The numbers support the claim. A November 2024 resource estimate outlined a staggering 824 million indicated tonnes grading 0.34% copper equivalent and another 670 million inferred tonnes at 0.38% CuEq. Recent drilling results have been equally impressive, with significant high-grade copper intersections confirming the system's richness. The $32.5 million injection will directly fund the critical work needed to de-risk the project further: infill and expansion drilling to grow the resource, detailed technical studies to define the mine plan, and navigating the all-important permitting process in Quebec.

By systematically advancing Gaspé Copper toward a construction decision, Osisko Metals is positioning itself to meet a tidal wave of future copper demand. The strategic importance of developing a domestic, large-scale copper source cannot be overstated, as it directly supports North American supply chain security for everything from electric vehicles to renewable energy infrastructure.

A Bellwether for Critical Metals Investment

This transaction serves as a potent indicator of the current climate in capital markets for the mining sector. In an era where copper is being called "the new oil" for its essential role in global decarbonization, major producers are actively seeking to secure their future production pipelines. The Osisko Metals placement demonstrates a key industry trend: majors are increasingly willing to fund promising developers with high-quality assets in stable jurisdictions rather than relying solely on riskier grassroots exploration.

For junior mining companies, this is a powerful and encouraging signal. It validates the model of acquiring and advancing well-vetted projects to a stage where they become attractive to larger partners or acquirers. The vote of confidence from Hudbay and Agnico Eagle provides a halo effect for Osisko Metals, likely improving its access to future capital and enhancing its negotiating position as the Gaspé project matures. It underscores that in the current market, a world-class deposit in a tier-one location is a magnet for strategic capital.

The deal also highlights the nuanced financial structures emerging in the sector. The fine print of the announcement reveals a web of strategic interests. Beyond Hudbay’s new investor rights, the transaction is also subject to a participation right held by Glencore Canada, a legacy of the 2023 asset sale. Should Glencore exercise this right, it would bring another global mining titan into the fold, further validating the project while adjusting the final ownership stakes. This complex interplay of interests ensures that the Gaspé project is backed by a deeply vested and experienced group of stakeholders, all aligned toward bringing this critical Canadian asset into production.