Osisko Mining Corporation

Osisko Mining Corporation

April 23, 2008 08:55 ET

Osisko Announces US$83 Million Financing From Cat Financial and Acquires Canadian Malartic Mining Fleet

MONTREAL, QUEBEC--(Marketwire - April 23, 2008) - Osisko Exploration Ltee (TSX:OSK)(FRANKFURT:EWX) is pleased to report that it has entered into an agreement with Hewitt Equipment Limited to acquire the mining fleet for its Canadian Malartic Gold Project. The fleet will include 12 Caterpillar® 793F - 227 tonne haul trucks, 2 O&K RH340BFS Electric loading units and various construction and auxiliary Caterpillar mining equipment. The commitment is for approximately US$83 million.

Caterpillar Financial SARL ("Cat Financial (Zurich)") of Zurich, Switzerland, has agreed to arrange and provide for financing through Caterpillar Financial Services Limited in Canada. The initial tranche of the financing will be to procure initial mobile equipment for construction valued at approximately US$5 million, and is expected to be available upon the delivery of the equipment in June 2008. The remaining amount will be made available in 2009 and 2010 and is repayable over a 60-month period. The agreement is subject to satisfaction of various conditions precedent.

Sean Roosen, President and CEO of Osisko, noted: "We are pleased to reach this important milestone in the Canadian Malartic Project and to join forces with Hewitt Equipment, a very strong and well established Cat® dealership, to support our operations of the Canadian Malartic Project. Their extensive branch network in Quebec, including their Val-d'Or location, will minimize our investment in working capital. We will also be able to benefit from Hewitt technical expertise and Caterpillar's training experience to maximize our productivity and minimize our operating costs. We also appreciate the confidence that Cat Financial has in our Project and our people in funding our mining equipment fleet. This agreement ensures that Osisko will have the necessary equipment to fast-track the development of the Project, in accordance with the schedule outlined in the Preliminary Assessment Report issued on March 31, 2008."

Mr. Jim Hewitt, President and CEO of Hewitt Equipment, noted: "It is both an honour and a privilege for Hewitt Equipment to be associated with Osisko Exploration, an organization who will operate the largest open-pit gold mine in Quebec. Osisko's high standards of professionalism and respect for people, for the environment and for the community are values that are very much aligned with those of Hewitt Equipment.

This is a great opportunity to contribute to the economic development of the Abitibi Region, a very dynamic part of the province of Quebec, and to further reinforce our presence in this area, particularly in Malartic and Val-d'Or."

About Osisko

Osisko Exploration Ltee 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 $160 million on hand and is carrying out an aggressive definition drilling and exploration campaign on the Canadian Malartic deposit and surrounding properties, and is preparing the Project for development.

About Hewitt Equipment

Hewitt Equipment Limited is the authorized Caterpillar dealer for the province of Quebec and Western Labrador. With headquarters in Pointe-Claire and 14 branches throughout Quebec, Hewitt sells, rents and services the full line of Caterpillar products under four large divisions: Heavy Equipment, Material Handling, Energy and Truck Engines, and Agricultural Equipment. Hewitt Equipment employs more than 1,850 people.

About CAT Financial

Cat Financial (Zurich) is the structured trade and project finance arm of Caterpillar Financial Services Corporation (Cat Financial), which itself is a wholly-owned subsidiary of Caterpillar Inc. Cat Financial provides a wide range of financing alternatives for Caterpillar® machinery and engines, Solar® gas turbines, as well as other equipment and marine vessels. Cat Financial has offices and subsidiaries located throughout the Americas, Asia, Australia, and Europe, with headquarters in Nashville, Tennessee, USA.

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 conditions of the agreement will be met, and that costs and financing conditions will be maintained, 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 Exploration Ltd
    John Burzynski
    Vice-President Corporate Development
    Osisko Exploration Ltd
    Daniel Boase
    Investor Relations
    Toll Free: 1-866-580-8891