Osisko Mining Corporation

Osisko Mining Corporation

November 28, 2006 08:00 ET

Osisko Closes Private Placement

MONTREAL, QUEBEC--(CCNMatthews - Nov. 28, 2006) - Osisko Exploration Ltd. (TSX VENTURE:OSK)(FRANKFURT:EWX) is pleased to announce that it has closed its previously announced non-brokered private placement with EurAsia Holding AG of Germany, principal shareholder of Osisko. The Company has issued a total of 1,000,000 units (the "Units") for gross proceeds of $5,500,000.

Each Unit consists of one common share and one common share purchase warrant. Each warrant is exercisable into one common share of the Company at $8.50 for a period of two years from the closing date. The pricing of the warrant was increased with respect to the initially disclosed price of $6.25, and the exercise period was reduced from three years to two years (see October 20, 2006 press release).

The securities issued under this private placement are subject to an eighteen month hold period expiring May 27, 2008.

As a result of this private placement, EurAsia Holding AG now holds 25,083,900 shares of Osisko, representing 44.1% of issued and outstanding shares. The proceeds will be used to finance ongoing drilling programs and equipment acquisitions for the Canadian Malartic project.

The Board of Directors and management of Osisko would like to thank Eurasia Holding AG for their continued support and their acceptance of the changes in the terms of the warrants.

Contact Information

  • Osisko Exploration Ltd.
    Mr. John Burzynski
    VP Corporate Development and Investor Relations
    Osisko Exploration Ltd.
    Daniel Boase
    Investor Relations
    416-742-5600 or Toll Free: 1-866-580-8891