Osisko Development Corp. entered into a securities purchase agreement on November 21, 2025, and announced the deal on November 24, 2025. The agreement transfers Osisko’s 100 % interest in the San Antonio Gold Project, a care‑and‑maintenance property in Sonora, Mexico, to Axo Copper Corp. In return, Osisko will receive 15,305,536 common shares of Axo, representing a 9.99 % non‑diluted stake, and will hold those shares for at least 12 months post‑closing.
The transaction includes several contingent payments: 70 % of any Mexican VAT refund owed to Sapuchi, US$2.0 million upon the filing of an NI 43‑101 feasibility study, and US$2.0 million upon the first gold pour. These milestones provide upside potential for Osisko while transferring operational responsibility to Axo.
Osisko’s management framed the sale as a strategic realignment. By divesting a non‑core asset that has been in care and maintenance since Q3 2023, the company can concentrate capital and management attention on its flagship Cariboo Gold Project in British Columbia, which is shovel‑ready and has recently completed a feasibility study. The retained equity stake in Axo gives Osisko upside exposure to the San Antonio project without the burden of day‑to‑day operations.
Osisko reported Q3 2025 results of CAD 4.41 million in revenue and a net loss of CAD 150.28 million, with CAD 401.4 million in cash and cash equivalents as of September 30, 2025. The company also secured a US$450 million Appian financing facility and raised US$203.1 million through private placements in August 2025. The sale of San Antonio is therefore a modest but meaningful transaction within the context of Osisko’s broader capital strategy.
Axo Copper, which completed an IPO in June 2025 that raised C$11.5 million, is focused on its La Huerta copper project in Mexico. Acquiring the San Antonio gold project expands Axo’s portfolio and provides infrastructure that can accelerate development of its existing assets. Osisko’s confidence in Axo’s ability to advance the project is reflected in the management quote: “In line with our strategy of focusing on priority development assets within our portfolio, we are pleased to announce the sale of San Antonio to Axo. We believe Axo is well equipped to successfully advance the project through its next phase, and look forward to remaining a supportive long‑term shareholder.”
The market reacted positively to the announcement, indicating investor approval of Osisko’s strategic focus on core development assets and the potential upside from its equity position in Axo.
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