Osisko Mining Corporation
TSX : OSK
FRANKFURT : EWX

Osisko Mining Corporation

October 29, 2007 16:38 ET

Osisko Exploration Ltd. Announces C$75,075,000 "Bought Deal" Financing

TORONTO, ONTARIO--(Marketwire - Oct. 29, 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) is pleased to announce that it has entered into an agreement with Westwind Partners Inc. as lead underwriter on behalf of a syndicate of underwriters (collectively, the "Underwriters") to purchase, on a bought deal private placement basis, 11,550,000 special warrants of the Company at a price of C$6.50 per special warrant, for aggregate gross proceeds of C$75,075,000. The Underwriters will arrange for purchasers of the special warrants. Each special warrant shall be automatically exercised for no additional consideration to acquire one unit in the capital of the Company, subject to adjustment in certain events, at 5:00pm (Toronto time) on the earliest of (a) the third business day after the date that a receipt is issued by the securities regulatory authorities in a jurisdiction of Canada for the Final Prospectus qualifying the units to be issued upon the exercise of the special warrants and (b) the date that is four months and one day following the closing date. Each unit will consist of one common share and one half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of the Company at a price of C$7.90 for 24 months following completion of the offering.

The Underwriters will have the option to purchase up to an additional 7,700,000 special warrants at the issue price for a period of up to two days prior to closing for additional gross proceeds of up to C$50,050,000.

Osisko plans to use the net proceeds of this financing to fund the exploration and development of the Malartic project. The Underwriters shall receive compensation comprised of cash upon closing of the offering.

The offering is scheduled to close on or about November 15, 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 including in the United Kingdom pursuant to applicable exemptions and in the United States on a private placement basis pursuant to exemptions 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