Osisko Mining Corporation

Osisko Mining Corporation

August 07, 2008 10:02 ET

Osisko Releases Second Quarter Financial Results

MONTREAL, QUEBEC--(Marketwire - Aug. 7, 2008) - Osisko Mining Corporation (TSX:OSK)(FRANKFURT:EWX) is pleased to report its financial results for the period ended June 30, 2008.

During the second quarter of 2008, the Company incurred a loss of $1.0 million ($0.01 per share) compared to a loss of $3.9 million ($0.03 per share) in the corresponding period of 2007. For the first semester, the Company has generated a profit of $3.7 million ($0.02 per share), mainly as a result of the recognition of the $4.5 million future tax recovery from the renunciation to the subscribers of the $25 million flow-through financing completed in July 2007 of the tax benefits for the exploration outlays. The loss recorded for the first six months of 2007 amounted to $4.6 million ($0.04 per share).

During the second quarter, the Company continued to pursue the development of its Canadian Malartic Project. Major achievements included:

- Continued progress on the relocation program with the development of the neighbourhood infrastructures. In addition, 12 homes were relocated to the new subdivision in July 2008;

- Selection of the mining fleet and the finalization of a US$83 million capital lease financing facility from Caterpillar Financial Services Limited;

- Closing of a $20 million unsecured term loan facility with the QFL Solidarity Fund;

- Negotiations with the Government of Quebec for the use of the former East Malartic tailings facility and to secure power supply for the Project.

- Completion of the analysis of the drill core samples from the Canadian Malartic drilling program and submission of the data to the consulting geological engineers. The Company expects to issue a measured and indicated resource calculation in the third quarter of 2008, which will be the foundation of the feasibility study;

- Continued focus on exploration on properties adjacent to Canadian Malartic to enhance the economics of the Project. Positive results have been generated at the Barnat target.

- Continued work on the Economic Impact Assessment and Feasibility studies; and

- Continued consultation with the residents of Malartic.

During the second quarter, the Company invested $27.6 million on the Canadian Malartic Project (Year-to-date: $46.4 million).

Key financial highlights are as follows:

June 30, 2008 December 31, 2007
Cash Position $154,764,000 $182,078,000
Working Capital $137,974,000 $183,476,000
Total Assets $290,933,000 $264,394,000
Shareholders' Equity $255,133,000 $252,538,000

Mr. Sean Roosen, President and CEO, commented: "We are pursuing an aggressive schedule to deliver the measured and indicated resource calculation on the Canadian Malartic deposit, and compiling a feasibility study to be issued prior to the end of 2008. We are working on developing a financing package for development of the Project."

The 2008 second quarter financial statements and Management Discussion and Analysis (MD&A) have been filed on SEDAR.

Osisko Mining Corporation is currently evaluating the Canadian Malartic gold deposit and adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Company is well-funded with approximately $155 million on hand and is carrying out an aggressive definition drilling and exploration campaign on the Canadian Malartic deposit and surrounding properties.

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" 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 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 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
    Osisko Mining Corporation
    Daniel Boase
    Investor Relations
    Toll Free: 1-866-580-8891