Osisko Mining Corporation
TSX : OSK
FRANKFURT : EWX

Osisko Mining Corporation

November 09, 2009 17:45 ET

Osisko Concludes SGF Financing Agreement for $75 M

MONTREAL, QUEBEC--(Marketwire - Nov. 9, 2009) - Osisko Mining Corporation ("Osisko") (TSX:OSK)(FRANKFURT:EWX) is pleased to announce that it has concluded the previously announced $75 million financing agreement with Societe generale de financement du Quebec ("SGF"). The financing is a senior non-guaranteed debenture, convertible at the discretion of the SGF into Osisko shares at a price of $9.18 per share. It carries an interest rate of 7.5%. The initial capital is to be reimbursed no later than November 9, 2014. The proceeds will be used to fund the construction and the development of the Canadian Malartic Project.

Mr. Sean Roosen, President and Chief Executive Officer of Osisko stated: "We are extremely pleased to have SGF as a financial partner in the development of the Canadian Malartic Project. This Project has a significant impact on the Quebec economy, in particular the Abitibi-Temiscamingue region, and will provide long-term benefits to Malartic with the creation of some 465 permanent jobs for more than 10 years."

About SGF

Societe generale de financement du Quebec (www.sgfqc.com) is an industrial and financial holding company. Its mission is to carry out economic development projects, with emphasis on the industrial sector, in cooperation with partners and in accordance with accepted requirements for profitability and the Government of Quebec's economic development policy. As part of its new mandate, SGF is authorized by the Government of Quebec to expand its traditional role as a share capital investor by offering complementary solutions, such as loans, debentures, or preferred share capital investments.

About Osisko

Osisko Mining Corporation is currently developing the Canadian Malartic gold deposit and adjacent mineralized zones into a large-scale open pit, bulk-tonnage mining operation. The Company is carrying out an aggressive mine development, reserve definition and exploration campaign. The Canadian Malartic deposit currently represents one the biggest gold reserves in Canada for a single deposit, and is still growing through ongoing drilling on new mineralized zones. Current reserves for the Canadian Malartic property are 6.28 million ounces, plus (including the Barnat deposit) a measured and indicated resource of 3.65 million ounces and an inferred resource of 0.84 million ounces.

Cautionary Notes Concerning Estimates of Mineral Resources

This news release uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that mineral resources are not economic mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for Preliminary Assessment as defined under NI 43-101. Readers are cautioned not to assume that that further work on the stated resources will lead to mineral reserves that can be mined economically.

Forward Looking Statements

Certain statements contained in this press release may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation that all technical, economical and financial conditions will be met in order to put the Canadian Malartic Project into commercial production, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include gold prices, access to skilled consultants, mining development and mill production personnel, results of exploration and development activities, the Corporation's limited experience with production and development stage mining operations, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations market prices, continued availability of capital and financing and general economic, market or business conditions. These factors are discussed in greater detail in the Corporation's most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. The Corporation cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Corporation's forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.

Contact Information

  • Osisko Mining Corporation
    John Burzynski
    Vice-President Corporate Development
    514-735-7131
    or
    Osisko Mining Corporation
    Sylvie Prud'homme
    Investor Relations
    514-735-7131
    Toll Free: 1-888-674-7563
    www.osisko.com