Osisko Development Takes 12.3% Stake in Niobay, Eyes Critical Minerals
The gold developer's $1.2 million investment in niobium explorer Niobay Metals signals a strategic diversification into materials crucial for battery and defense technology.
Osisko Development Corp. (NYSE: ODV), a North American gold developer, has taken a significant stake in junior explorer Niobay Metals Inc. (TSX-V: NBY), signaling a strategic pivot into the burgeoning critical minerals sector. According to an early warning report filed Tuesday, Osisko Development acquired a 12.3% basic interest in Niobay, a company focused on developing niobium resources in Canada.
The transaction, while modest for the nearly billion-dollar gold company, represents a major strategic investment and vote of confidence in Niobay, which has a market capitalization of approximately CAD$15.35 million. Shares of Osisko Development were little changed in afternoon trading, while Niobay’s stock saw a slight uptick on the news.
According to the press release issued on GlobeNewswire, Osisko acquired 8,571,429 units of Niobay for approximately $1.2 million through its subsidiary, Barkerville Gold Mines. Each unit consists of one common share and one purchase warrant. This purchase, combined with prior holdings held with joint actor Electric Elements Mining Corp., gives the group control of 12.3% of Niobay’s outstanding shares, a figure that rises to 16.2% assuming the full exercise of the newly acquired warrants.
For Osisko Development, a company with a market capitalization of over $930 million and focused on major gold projects like the Cariboo Gold Project in British Columbia, the move represents a calculated diversification. The company stated the shares were acquired for “investment purposes,” a common phrase that in this context points to a strategic foothold in a completely different commodity class.
The investment zeroes in on niobium, a metal that has gained significant strategic importance. Niobium is primarily used to produce high-strength, low-alloy steel for infrastructure and transportation, but its applications in green energy and defense have elevated its status. A September 2025 report from the U.S. Geological Survey identified niobium as a mineral with high urgency, citing its essential role in national defense and the potential economic impact of a supply disruption. This geopolitical context has fueled a rush to secure stable, North American sources of the material.
This is where Niobay Metals fits into Osisko's strategy. The junior exploration firm is advancing two key Canadian niobium projects: the James Bay Niobium Project in Ontario and the Crevier Project in Quebec. Niobay has been making tangible progress, recently securing a new exploration permit in October 2025 to resume drilling at James Bay. Meanwhile, at its Crevier project, the company announced in August 2025 that it had completed a drilling campaign and was scaling up a pilot plant to produce niobium oxide samples specifically for battery manufacturers, tapping into a high-value emerging market.
Osisko’s investment provides Niobay with crucial capital to advance these development goals. For a micro-cap explorer, a $1.2 million injection paired with the technical backing of a seasoned developer like Osisko could significantly de-risk its projects and accelerate its path to production.
The deal is emblematic of a wider trend across the mining industry, where established players are using strategic investments to gain exposure to the critical minerals supply chain, a sector heavily supported by government-led industrial policy in both the U.S. and Canada. For Osisko, it is a low-cost entry into a high-demand sector, complementing its core gold development assets. For Niobay, it is a powerful endorsement that could attract further investor interest as it works to build a North American source of a strategically vital metal.