Osisko - Virginia Gold Royalties
gold royalty company - 5% NSR on Malartic.
Message: Closes C$403 Million Financing
| February 25, 2009 |
| Osisko Mining Corporation Closes C$403 Million Financing |
| MONTREAL, QUEBEC--(Marketwire - Feb. 25, 2009) - THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. 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. |
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