Osisko Mining Corporation

Osisko Mining Corporation

February 26, 2008 15:44 ET

Osisko Releases 2007 Financial Results

MONTREAL, QUEBEC--(Marketwire - Feb. 26, 2008) - Osisko Exploration Ltd. (TSX:OSK)(FRANKFURT:EWX) is pleased to report its annual financial results. Key financial highlights are as follows:

Years ended December 31
(in thousands of dollars) 2007 2006
Cash Position 182,078 12,895
Working Capital 183,476 15,156
Total Assets 264,394 31,581
Shareholders' Equity 252,538 28,039
Net Loss (11,792) (7,512)
Loss per Share ($/Share) (0.09) (0.07)
Weighted Average
Shares Outstanding (000's) 131,740 105,531

The fourth quarter loss amounted to $1,827,000 ($0.01 per share) compared to a loss of $5,032,000 ($0.04 per share) in the corresponding period of 2006.

During 2007, the Company aggressively pursued the development of its Canadian Malartic Project with a total of 182,238 metres drilled, including 71,540 metres in the fourth quarter. The Company also issued a NI 43-101 compliant resource calculation in mid-year which produced an inferred resource of 8.4 million ounces. This is an increase of nearly 2 million ounces from the initial inferred resource released in December 2006.

Osisko made significant progress in 2007 on its relocation program in the town of Malartic, through the initial acquisition of land required to accommodate new and relocated houses, initiating infrastructure development in the new sector, assigning new lots with residents and acquiring homes from those who prefer not to relocate. The Company is working towards the completion of home purchases and lot assignments and is maintaining an active dialogue and consultation process with the residents of Malartic.

During 2007, the Company also strengthened its balance sheet, raising $230.6 million from private placements and $4.6 million through the exercise of previously issued options and warrants. The strong financial position allows the Company to progress from the exploration stage to the development stage.

In late 2007 the Company successfully recruited an experienced technical management team to oversee the preparation of the Feasibility Study and the proposed construction/development work on the Canadian Malartic Project. In conjunction with gaining the technical team, contracts were awarded by Osisko to several prominent firms for the execution of the Feasibility Study, which is scheduled to be released in the fourth quarter of 2008.

Commenting on the company performance for the year, Sean Roosen, President and CEO stated: "We are very pleased with our progress in 2007, as we positioned Osisko to move towards the successful development of the Canadian Malartic Project. We continue to fast track all of our programs, with the goal of transitioning Osisko from an exploration company towards an emerging developer. We are very fortunate to be located in Quebec, one of the premier mining jurisdictions in the world, to have a highly qualified development team, as well as the support of the town of Malartic - all of which will contribute to making this a successful mine."

The 2007 annual financial statements and Management Discussion and Analysis (MD&A) have been filed on SEDAR.

Osisko Exploration Ltd. 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 $180 million on hand and is carrying out an aggressive definition drilling and exploration campaign on the Canadian Malartic deposit and surrounding properties.

Contact Information

  • Osisko Exploration Ltd.
    John Burzynski
    Vice-President Corporate Development
    Osisko Exploration Ltd.
    Daniel Boase
    Investor Relations
    Toll Free: 1-866-580-8891