Osisko Mining Corporation
TSX : OSK
FRANKFURT : EWX

Osisko Mining Corporation

January 24, 2007 15:58 ET

Osisko Announces C70$ Million "Bought Deal" Financing

MONTREAL, QUEBEC--(CCNMatthews - Jan. 24, 2007) - THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Osisko Exploration Ltd. (TSX VENTURE:OSK) (Deutsche Boerse:EWX) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Westwind Partners Inc. (the "Underwriters") to sell, on a bought deal private placement basis, 6,100,000 Common Shares of the Company at a price of C$11.50 per Common Share, for aggregate gross proceeds of C$70,150,000. The securities issuable under the private placement are subject to a four month hold period from the closing date.

The Underwriters will have the option to purchase up to an additional 900,000 Common Shares at the issue price for a period of up to two days prior to closing for additional gross proceeds of up to C$10,350,000. Furthermore, the Underwriters will have the option, subject to mutual agreement between parties, to purchase up to an additional 1,700,000 Common Shares at the issue price for a period of up to two days prior to closing for additional gross proceeds of up to C$19,550,000. Osisko will use the net proceeds of this financing to fund the exploration and development of the Company's Canadian Malartic gold project.

The Underwriters dealer group shall receive compensation comprised of cash and broker warrants upon close of the offering.

The offering is scheduled to close on or about February 8, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The securities to be issued under this offering will be offered by way of private placement exemptions in all the provinces of Canada, offshore and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.


The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Osisko Exploration Ltd.
    Mr. John Burzynski
    Vice-President Corporate Development
    514-735-7131
    or
    Osisko Exploration Ltd.
    Daniel Boase
    Investor Relations
    416-742-5600
    Toll Free: 1-866-580-8891
    www.osisko.com