Osisko Mining Corporation

Osisko Mining Corporation

May 14, 2009 11:47 ET

Osisko Releases First Quarter 2009 Results

MONTREAL, QUEBEC--(Marketwire - May 14, 2009) - Osisko Mining Corporation (the "Company") (TSX:OSK)(FRANKFURT:EWX) is pleased to report its first quarter financial results for the period ended March 31, 2009 and to provide an overview of its activities.

Following the conclusion of a successful $403 million equity financing in February 2009, the Company has continued with the development of its flagship Canadian Malartic gold deposit. Current reserves at Canadian Malartic stand at 6.3 million ounces (see press release dated November 25, 2008).

The Company entered into a formal public hearing process held by Quebec's Bureau des audiences publiques en environnement ("BAPE") following the receivability of its Environmental Impact Assessment Study in January 2009. The Company participated in a series of public meetings in Malartic and is collaborating with the BAPE and the Ministry of Sustainable Development, Environment and Parks ("MSDEP") officials as they progress in the assessment of the Project. The BAPE is expected to table a report to the Minister of MSDEP no later than July 9, 2009.

The Company has also made significant progress on the relocation program, including the construction of new institutional infrastructures for Malartic. The residential relocation program was reinitiated in April following the end of the winter season, and as of the date of this press release, an additional 27 homes have been moved to the new town subdivision. Sixty homes were previously relocated in 2008.

Detailed engineering has advanced to a completion rate of approximately 45%, and development personnel are continuing to complete negotiations on the remaining supply agreements. Committed and completed expenditures on the Project amount to US$250 million. Based on the November 2008 Feasibility Study, the total project budget is estimated at US$789 million, with commercial production expected to commence in April 2011.

On the exploration front, the Company drilled 77,185 metres mainly on the South Barnat deposit. An inferred resource calculation on the South Barnat deposit was issued in January 2009, and the Company anticipates issuing a measured and indicated resource calculation in the current quarter.

The Company has also strengthened its senior management team with the recent appointments of Mr. Sergio Cattalani as Vice President, Exploration and Mr. Robert Mailhot as Vice President; Human Resources.

Mr. Sean Roosen, President and CEO, commented: "Our February financing was a company changing event, moving the Company one large step closer to our goal of achieving near-term production. Our strong financial position allows us to pursue the development of the Canadian Malartic Project, while continuing to aggressively explore the property to grow our reserve and resource base. We are well on our way to achieving our goal of making Osisko Canada's newest premium intermediate gold producer."

During the first quarter, the Company incurred a net loss of $0.8 million ($0.00 per share) compared to a net income of $4.7 million ($0.03 per share) in the corresponding period of 2008. Higher operating costs were incurred in 2009 as the Company is moving from an exploration company to a mid-tier gold developing company. In addition, the Company recognized a $2.0 million (2008 - $4.7 million) future tax recovery following the renunciation of its exploration expenditures to subscribers of a September 2008 $12.3 million flow-through issue (2008 - $25 million flow-through issue in July 2007).

Highlights from the Company's financial position are as follows (in millions of dollars):

March 31, 2009 December 31, 2008
Cash Position(1) 449.2 95.7
Working Capital 443.3 92.7
Total Assets 705.0 318.2
Shareholders' Equity 649.2 267.3

(1) Includes Cash and Cash equivalents, Short-term investments, Restricted
cash and Cash collateral

The financial statements and Management Discussion and Analysis (MD&A) for the period ended March 31, 2009, will be filed on SEDAR by May 15, 2009.

Osisko Mining Corporation is currently developing the Canadian Malartic gold deposit and evaluating adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Company is well-funded with approximately $450 million on hand.

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" 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 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 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.

Contact Information

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