Osisko Mining Corporation
TSX : OSK
FRANKFURT : EWX

Osisko Mining Corporation

September 10, 2008 16:11 ET

Osisko Announces Eurasia Holding AG Now Owns 43.9 Million Osisko Shares

MONTREAL, QUEBEC--(Marketwire - Sept. 10, 2008) - Osisko Mining Corporation (TSX:OSK)(FRANKFURT:EWX) has been advised by its principal shareholder, EurAsia Holding AG ("EurAsia"), that EurAsia has agreed to sell from its holdings 8,000,000 common shares of Osisko to a strategic investor at a price of $2.50 per share.

EurAsia owns 51,894,534 Osisko common shares (approximately 32% of the outstanding shares) and has agreed to the sale from its holdings with the result that after the transaction it will own 43,894,534 Osisko common shares. EurAsia has advised that the proceeds of sale ($20,000,000) will enable it to adjust its assets and liabilities and improve its balance sheet.

The transaction is subject to the execution of a definitive purchase agreement and other usual conditions of closing.

About Osisko

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 $150 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", "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
    www.osisko.com
    or
    Osisko Mining Corporation
    Daniel Boase
    Investor Relations
    416-742-5600
    Toll Free: 1-866-580-8891