Osisko Strengthens Balance Sheet With $241 M Proceeds From
Exercise of $5.45 Warrants
MONTREAL, QUEBEC, November 18, 2009 - Osisko Mining Corporation
("Osisko") (TSX:OSK) (FRANKFURT:EWX) is pleased to report that it has received
proceeds of $241 million from the exercise of 44,232,490 of its $5.45
warrant (OSK.WT.A) which expired on November 17, 2009. Some 42,510
warrants were not exercised.
These
warrants were issued as part of the February 2009 $403 million financing
underwritten by 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 $4.55 per Unit. Each Unit consisted of
one common share and one-half of one common share purchase warrant.
Sean
Roosen, President and Chief Executive Officer, commented on the exercise
of the warrants: "We are extremely pleased to receive the proceeds
of $241 million, in addition to the recent proceeds of $39.6 million from
the exercise of the $7.90 warrants, thereby providing us with one of the
strongest balance sheets in our sector. We appreciate the confidence of
our shareholders as we develop the Canadian Malartic Project and look to
grow our asset base with high quality gold development projects."
Osisko
currently has 335,474,919 shares outstanding, and cash on hand of $775
million.
About Osisko
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 Canadian Malartic deposit currently represents one the
biggest gold reserves in Canada for a single deposit, and is still
growing through ongoing drilling on new mineralized zones. Current reserves
for the Canadian Malartic property are 6.28 million ounces, plus a global
measured and indicated resource of 3.65 million ounces and an inferred
resource of 0.84 million ounces (including the adjacent South Barnat
deposit).
Forward
Looking Information
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", "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 comm ercial 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.
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