Osisko Mining Corporation

Osisko Mining Corporation

December 30, 2010 15:14 ET

Osisko Receives Securities of Ryan Gold Corp.


Osisko Mining Corporation ("Osisko")(TSX:OSK)(FRANKFURT:EWX) announces that it has received from Ryan Gold Corp. ("Ryan Gold") 8,000,000 common shares and 4,000,000 common share purchase warrants (the "Warrants") following a merger between Ryan Gold and Ryan Gold Inc. in exchange for common shares and warrants held by Osisko in Ryan Gold Inc.

Each Warrant entitles its holder to purchase one common share for $1.15 during a period ending on November 19, 2013.

Ryan Gold's management has agreed to recommend the election of an Osisko representative to Ryan Gold's Board of Directors.

Osisko currently holds an aggregate of 8,000,000 common shares representing 9.90% of the total number of issued and outstanding common shares of Ryan Gold. Should the Warrants be fully converted, Osisko would hold 12,000,000 common shares or 14.14% of the total number of issued and outstanding common shares of Ryan Gold.

Osisko holds the common shares and the Warrants for investment purposes only and not with a view to materially affect the control of Ryan Gold. Osisko has no present intention of acquiring beneficial ownership or control over additional securities of Ryan Gold.

About Osisko Mining Corporation

Osisko Mining Corporation is currently developing the Canadian Malartic gold deposit in Quebec and evaluating adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Canadian Malartic deposit currently represents one the biggest permitted gold reserves in Canada, and is still growing through ongoing drilling on new mineralized zones. Current reserves for the Canadian Malartic property are 9.0 million ounces (see details in Osisko press release dated February 10, 2010). Osisko is also developing the Hammond Reef gold project near Atikokan Ontario through an aggressive definition drilling program of 350,000 metres. Hammond Reef is currently estimated to contain a National Instrument 43-101 compliant inferred resource of 6.70 million ounces of gold (259.4 million tonnes at a grade of 0.8 grams per tonne, using 0.3 grams per tonne cut-off), of which 97% lies within 300 metres of surface.

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 Osisko 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 including, without limitation, the commencement of commercial production. Although Osisko 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 warrant further development of the project, 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 personnel, results of exploration and development activities, Osisko'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 Osisko's most recent Annual Information Form and in the most recent Management Discussion and Analysis filed on SEDAR, which also provide additional general assumptions in connection with these statements. Osisko cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Osisko 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
    Sylvie Prud'homme
    Investor Relations
    Toll Free: 1-888-674-7563