OSISKO DRAWS $75 MILLION ON CPPIB CREDIT INVESTMENTS INC.
CREDIT FACILITY.
Montreal,
QC - December 31, 2010 - Osisko Mining Corporation
(�Osisko� or the �Company� - OSK - TSX, EWX -
Deutsche Boerse) 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.c ppib.ca.
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.
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