MONTREAL, QUEBEC--(Marketwire
- March 28, 2011) - Osisko Mining Corporation
("Osisko")(TSX:OSK)(FRANKFURT:EWX)
is pleased to report that it has exercised its buy out option to
purchase 50% of the net smelter royalty held over certain claims
included in the Canadian Malartic property
for US$1.5 million.
Subsequent to the buy-out and upon the commencement of production at
Canadian Malartic, the Company will pay a net
smelter royalty of 1.5% originating from certain claims when the price
of gold is equal to or above US$350 per ounce, and 1% when the price of
gold is below US$350 per ounce to Royal Gold Inc., the current royalty
owner.
Mr. Sean Roosen, President and CEO,
commenting on the transaction said: "This exercise of the buy-out
option is another milestone in our pursuit of placing the Canadian Malartic Project into production. With the steady
and on-going progress in plant commissioning, we anticipate achieving
commercial production in May 2011."
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.
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