06:28 AM EST, 11/19/2024 (MT Newswires) -- Osisko Metals ( OMZNF ) (OM.V ), which jumped 16% to a 52-week high yesterday, overnight Monday said it expanded its leadership team and raised $100 million in bought deal financing as it seeks to accelerate the strategy of creating a leading North American critical metals company.

John Burzynski will join the board as executive chairman while Robert Wares will continue as chief executive. Don Njegovan and Blair Zaritsky will be appointed as president and chief financial officer respectively. Additionally, Luc Lessard, a director of the company since 2019, will step down from the board and Anthony Glavac will step down as CFO. Lessard will remain as technical advisor to the board.

In addition, Osiskok Metals said a syndicate of underwriters agreed to purchase, subject to certain conditions, 288,465,000 HD units at a price of $0.26 apiece for proceeds of $75 million and 50 million flow-through units at a price of $0.50 each, raising another $25 million.

Each HD unit consists of one common share of the company and one-half of one transferrable common share purchase warrant. Each FT unit consists of one common share and one-half of one warrant. Each warrant will entitle the holder to purchase one common share of the company at a price of 0.35 per common share for a period of two years following the closing of the transaction.

The company has also granted the underwriters an option, exercisable in whole or in part, at any time up to the closing date of the transaction, to acquire up to an additional $15 million in any combination of HD units and FT units. In consideration for the underwriters' services, the company will pay the underwriters a cash commission equal to 5% of the gross proceeds of the transaction (including the additional proceeds realized upon the eventual exercise of the underwriters' option).

The company said it intends to use the proceeds of the transaction towards the advancement of its Gaspe Copper project to a construction decision, and for general corporate purposes.

Closing of the transaction is expected to take place on or about December 10, 2024, and is subject to certain conditions including, but not limited to, the conditional and final approval of the TSX Venture Exchange. All securities issued under the transaction will be subject to a hold period expiring four months and one day from the closing date.