Osisko Development (ODV) said late Monday it has entered into an agreement on behalf of a syndicate of underwriters, where the underwriters have agreed to purchase, on a "bought deal" basis, 35.3 million common shares priced at $3.54 a share, for gross proceeds of $125 million.

The company plans to use the net proceeds to finance infill conversion drilling, at depth exploration at the Cariboo Gold Project, and for general working capital purposes.

The underwriters have an option to buy up to an additional 5.3 million shares at the offering price to cover over-allotments, if any, for gross proceeds of up to $18.75 million, exercisable in whole or in part, at any time on or before 30 days following the closing date, the company said.

The offering is expected to close on or about Jan. 30, subject to regulatory approvals.