Osisko Gold Group Inc. (NYSE: OGG) said its board of directors has approved a formal construction decision for the Cariboo Gold Project in central British Columbia, with first gold pour targeted for the first quarter of 2029 and commercial production expected in the second half of 2029.

The company updated its remaining go-forward capital obligation to C$990 million, net of approximately C$272 million in costs already incurred through July 31, 2026. The figure includes a contingency of approximately 16.5% and assumes equipment leasing of approximately C$117 million. The construction period has been extended to 30 months from August 1, 2026, compared with the 24 months outlined in the 2025 feasibility study.

Overall project completion stood at an estimated 22% as of July 31, 2026. Detailed engineering is approximately 40% complete, and procurement commitments for long-lead items are approximately 44% complete, with C$325 million committed to date.

In connection with the decision, Osisko Gold announced agreements with Trafigura Canada Limited and its affiliate Urion Investments Holdings Limited. Urion agreed to acquire 9,554,141 common shares at US$3.14 per share, representing a 10% premium to the five-day volume-weighted average price on the TSX Venture Exchange, for gross proceeds of approximately US$30 million. Trafigura also agreed to purchase 100% of the project's gold concentrate and doré output for the first four years of production.

The parties additionally agreed to non-binding terms for a potential subordinated gold prepayment facility of up to US$120 million, with an exclusivity period granted to negotiate definitive documentation. No assurance was given that a final agreement will be reached.

Total available and proposed sources of capital are estimated at up to C$1,637 million, including C$837 million in cash and equivalents, against estimated uses of approximately C$1,435 million, projecting surplus liquidity of approximately C$201 million through commercial production.

According to the press release, the project is designed as a conventional underground mining operation with a 10-year mine life and average annual gold production of 190,000 ounces over that period.