Osisko Mining Corporation

Osisko Mining Corporation

October 17, 2008 08:00 ET

Osisko Launches Normal Course Issuer Bid

MONTREAL, QUEBEC--(Marketwire - Oct. 17, 2008) - Osisko Mining Corporation (TSX:OSK)(FRANKFURT:EWX) ("Osisko" or the "Corporation") is pleased to announce that the Toronto Stock Exchange (the "TSX") has accepted the Corporation's notice of intention to make a normal course issuer bid. Under the terms of the normal course issuer bid, Osisko may acquire up to 11,669,526 of its common shares, representing approximately 10% of the public float of Osisko as of October 15, 2008.

The Board of Directors of Osisko believes that the underlying value of the Corporation may not be reflected in the market price of its common shares from time to time and that, accordingly, the purchase of shares will increase the proportionate share interest of, and be advantageous to, all remaining shareholders.

As of October 15, 2008, the Corporation has 165,628,918 common shares outstanding. The average daily trading volume of Osisko's shares over the last six completed calendar months was 276,110. Accordingly, under TSX rules and policies, Osisko is entitled on any trading day to purchase a maximum of 69,027 shares.

The purchases may commence on October 21, 2008 and will terminate on October 20, 2009, or on such earlier date as Osisko may complete its purchases pursuant to the notice of intention to make a normal course issuer bid filed with the TSX.

All shares purchased by the Corporation will be on the open market through the facilities of TSX in accordance with the policies of the TSX and will be surrendered by the Corporation to its transfer agent for cancellation. The prices that Osisko will pay for any of the common shares purchased will be the market price of the shares at the time of acquisition. In the last 12 months preceding the date hereof, Osisko has not re-purchased any of its common shares.

Osisko has appointed Thomas Weisel Partners Canada Inc. to make the purchases on its behalf.

Sean Roosen, President and CEO of Osisko, stated: "By instituting this normal course issuer bid, management has taken the decision to help stabilize downward pressure in our share price, which we believe is largely due to turbulent financial markets. The normal course issuer bid will be used with great discretion on the part of management for the sole purpose of stabilizing the share price, which we feel does not currently reflect the underlying value of the Corporation. Osisko is well financed with $140 million in cash and the Corporation continues to build value in the company by developing the Canadian Malartic gold project, which we consider to be one of the premier gold projects in North America."

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