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Osisko Mining Corporation
("Osisko" or the "Company")(TSX:OSK - News; FRANKFURT:EWX - News) is pleased to announce
that on December 31, 2010, it has drawn the second tranche of $75 million
under the $150 million credit agreement negotiated in September 2009 with
CPPIB Credit Investments Inc. ("CPPIB"), a wholly - owned
subsidiary of the CPP Investment Board. The funds will be used for the
development of the South Barnat deposit and general corporate purposes. Under
the terms of the agreement, Osisko issued to CPPIB 5.5 million warrants which
are exercisable prior to December 31, 2015. Each warrant allows CPPIB to
purchase one common share of Osisko at a price of $19.25, representing a 30%
premium to the 15 day volume weighted average price prior to issuance. Osisko
may accelerate the exercise of the warrants if the shares of Osisko trade at
or above a 50% premium to the exercise price for a period of 15 days.
Sean Roosen, President and CEO noted:
"We greatly appreciate having CPPIB as a financial partner as our
Company pursues its goal to become a leading intermediate gold
producer".
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.
About CPP Investment Board
The CPP Investment Board is a
professional investment management organization that invests the funds not
needed by the Canada Pension Plan to pay current benefits on behalf of 17
million Canadian contributors and beneficiaries. In order to build a diversified
portfolio of CPP assets, the CPP Investment Board invests in public equities,
private equities, real estate, inflation-linked bonds, infrastructure and
fixed income instruments. Headquartered in Toronto, with offices in London
and Hong Kong, the CPP Investment Board is governed and managed independently
of the Canada Pension Plan and at arm's length from governments. At September
30, 2010, the CPP Fund totaled $138.6 billion. For more information about the
CPP Investment Board, please visit www.cppib.ca
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Cautionary Notes Concerning Estimates of
Mineral Resources
This news release uses the terms
measured, indicated and inferred resources as a relative measure of the level
of confidence in the resource estimate. Readers are cautioned that mineral
resources are not economic mineral reserves and that the economic viability
of resources that are not mineral reserves has not been demonstrated. In
addition, inferred resources are considered too geologically speculative to
have any economic considerations applied to them. It cannot be assumed that
all or any part of an inferred mineral resource will ever be upgraded to a
higher category. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of feasibility or pre-feasibility studies or
economic studies except for Preliminary Assessment as defined under NI
43-101. Readers are cautioned not to assume that that further work on the
stated resources will lead to mineral reserves that can be mined
economically.
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:
John Burzynski
Osisko Mining Corporation
Vice-President Corporate Development
416-363-8653
www.osisko.com |
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