Osisko Mining Corporation

Osisko Mining Corporation

May 12, 2008 10:01 ET

Osisko Closes $20 Million Unsecured Debt Financing

MONTREAL, QUEBEC--(Marketwire - May 12, 2008) - Osisko Exploration Ltee (TSX:OSK)(FRANKFURT:EWX) is pleased to announce that it has closed its previously announced agreement with Solidarity Fund QFL (the Fund) for a $20 million unsecured debt financing having a seven-year term. The debt will carry 9.5% interest, payable in shares or cash prior to commercial production and in cash thereafter. Principal will be repaid in a minimum of 48 equal installments commencing on the earlier of commercial production of the Canadian Malartic Project or 36 months from closing.

The Company also granted the Fund 1,100,000 warrants exercisable within 60 months at a price of $7.46. The Company may accelerate the exercise of warrants if Osisko's shares trade at a significant premium to the exercise price during the term of the warrants.

Sean Roosen, President & CEO of Osisko, commented: "We are extremely pleased with the Fund's financial participation in the Canadian Malartic Project. Our gold project will have a significant impact on the Abitibi economy and it is anticipated that 400 jobs will be created over a period of at least 15 years."

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 $170 million on hand and is carrying out an aggressive definition drilling and exploration campaign on the Canadian Malartic deposit and surrounding properties.

About the Solidarity Fund QFL

With net assets of over $7.4 billion as at November 30, 2007, the Solidarity Fund QFL is a development capital company that through its RRSP channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and to further Quebec's economic growth. The Fund is a partner, either directly or through its network members, in 1,696 companies. It currently has more than 575,000 shareholders and has helped, on its own or with other financial partners, to create, maintain and protect over 122,000 jobs. For more information, visit www.fondsftq.com

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 Exploration Ltee
    John Burzynski
    Vice-President Corporate Development
    Daniel Boase
    Investor Relations
    Toll Free: 1-866-580-8891