08:33 AM EST, 11/13/2024 (MT Newswires) -- Osisko Development ( ODV ) on Wednesday said its third-quarter loss widened more than fourfold on weak revenue, while it bolstered its cash position with a private placement.

The company, which is developing mining projects in British Columbia and Utah, said it lost $33.9 million, or $0.40 per share, in the quarter, compared with a loss of $7.1 million, or $0.08, in the year-prior period.

Revenue plunged to $161,000 from $10.42 million as it sold 47 ounces of gold from its Cariboo gold project in British Columbia.

The company said it had $40.8 million of cash on hand at the end of the quarter after fully drawing down a US$50-million credit facility. However it added to its cash position on Tuesday with the US$57.5-million private placement of share units.

Osisko sold 31.9 million units at US$1.80 apiece. Each unit includes one share and one warrant, with warrants exercisable at US$3.00 until Oct. 1, 2029.

"Proceeds will support Cariboo and Tintic projects, debt repayment and corporate needs," National Bank Financial analyst Don DeMarco noted.

Osisko is tunneling at the Cariboo project to reach its ore body and collect a bulk sample. It is also updating a feasibility study for the project expected to be complete in the second quarter of next year.

It is also continuing exploration drilling at its Tintic project in Utah.

Osisko shares closed down $0.03 to $2.21 Tuesday on the TSX Venture Exchange.