Osisko Mining Corporation

Osisko Mining Corporation

February 25, 2009 09:35 ET

Osisko Mining Corporation Closes C$403 Million Financing


Osisko Mining Corporation ("Osisko" or the "Corporation") (TSX:OSK)(FRANFURT:EWX) is pleased to announce that it has closed its previously announced public offering, on a bought-deal basis, with a syndicate of underwriters (the "Underwriters"), led by Thomas Weisel Partners Canada Inc. and BMO Nesbitt Burns Inc., and including Dundee Securities Corporation, RBC Dominion Securities Inc., National Bank Financial Inc., Paradigm Capital Inc., Canaccord Capital Corporation, TD Securities Inc. and PI Financial Corp. Osisko issued a total of 88,550,000 units (the "Units") of the Corporation at a price of C$4.55 per Unit, for aggregate gross proceeds of C$402,902,500.

Each Unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder thereof to purchase one additional common share upon payment of the exercise price of C$5.45 until November 17, 2009. Osisko will use the proceeds of the offering for the development and construction of its Canadian Malartic Project and for working capital purposes.

Sean Roosen, President and CEO of Osisko, stated: "Today marks a banner day for Osisko Mining Corporation and all of its stakeholders. With the closing of this financing we have successfully moved another step closer to our goal of bringing the Canadian Malartic gold deposit into production. On behalf of the Board of Directors and management, I would like to thank our shareholders for their support and strong vote of confidence in our company.

This financing puts Osisko in the unique position of having one of the strongest balance sheets in the gold sector. This will allow us to fast-track towards production, subject to permitting. Our November 2008 feasibility study outlines the potential for a ten year mine life with an average annual production of over 591,000 ounces with an operating cost of US$319. With our reinforced treasury and one of the largest reserves owned by an independent developer located in one of the world's most favorable mining jurisdictions, an experienced mine-build team, and eight drills on the property executing a program for 2009 of 200,000 metres of drilling, we are confident that we will continue to grow shareholder value in our company."

Mr. Robert Wares, P. Geo., Executive Vice-President and COO of Osisko, is the Qualified Person responsible for the technical information reported in this news release.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Forward Looking Statements

Certain statements contained in this press release may be deemed "forward-looking statements", including statements regarding the intended use of the proceeds of the offering. 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.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this 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