OSISKO AND CLIFTON STAR COMPLETE JOINT VENTURE AGREEMENT ON
DUPARQUET PROJECT
Montreal, Quebec, December 11, 2009 � Osisko Mining
Corporation (��Osisko��) (TSX: OSK; Deutsche Boerse: EWX) and Clifton
Star Resources (�Clifton�) (TSXV:CFO; Deutsche Boerse:C3T) are pleased to announce that they have
finalized an Agreement to enter into a Joint Venture on the Duparquet
Project announced on November 16, 2009.
Under the terms of the Agreement, Osisko will earn a 50% interest in the
Joint Venture by investing $70 million over a 4-year period, including a
firm commitment of $15 million in 2010. Osisko will act as operator of
the Joint Venture during the earn-in period and thereafter as long as
Osisko holds a minimum 50% interest in the Joint Venture.
Osisko
has also agreed to advance up to $31 million to Clifton to fund its opt
ion payments to the underlying property vendors. These advances are
repayable within 24 months after disbursements, bear an annual interest
rate of 5%, and are unsecured.
Osisko will also make an unsecured loan to Clifton for a principal amount
of $6 million on or before January 1, 2010 for general corporate
purposes. This loan will also bear interest at the rate of 5% per
annum, have a term of 12 months from the date of advance, and will be
evidenced by a promissory note. Clifton, at its sole option, may elect at
any time to convert the entire amount of principal and interest owing
under such loan into common shares of Clifton at a conversion price per
share of $3.12, provided such conversion is subject to prior approval of
applicable regulatory agencies and stock exchanges. The promissory note
shall provide for the customary anti-dilution and conversion rights
protection for the lender.
The coming into force of the Agreement
remains subject to the approval of the stock exchange.
Mr. Sean Roosen, President and Chief
Executive Officer of Osisko commented on the transaction: ��We look
forward to initiating an intensive exploration program on the Duparquet
Project. We believe the project offers excellent potential for the
definition of additional porphyry-hosted gold resources, and we are
confident in our ability to build on the previously identified
resources.��
Mr. Harry Miller, President and Chief Executive Officer of Clifton Star
commented: �We are pleased to conclude this Joint Venture Agreement, and
are excited about getting Osisko�s exploration and technical teams at
Duparquet. Shareholders of both Clifton Star and Osisko should be in for
an exciting year ahead.�
About the Duparquet Project
The
Duparquet Project is located in the Abitibi region of Quebec,
approximately 90 km northwest of Osisko�s Canadian Malartic Project. It
comprises two large property blocks that cover approximately 8 kilometres
of strike length along the prolific Porcupine Destor Fault Zone, which
has historically produced over 80 million ounces of gold. The properties
host former producing underground gold mines (including the Beattie,
Donchester and Duquesne mines which, collectively, produced over 1.5
million ounces of gold from 1933 � 1991) and two deposits with known gold
resources (Central Duparquet and Dumico).
Clifton recently filed a NI 43-101 compliant report based on new drilling
at Beattie and Donchester which outlines significa nt gold resources on
the property (see Clifton press release dated September 8, 2009).
About Clifton Star
Clifton
Star Resources, Inc. is a junior gold exploration company focused on
developing its Duparquet and Destor Township gold properties located in
northwestern Quebec. Historically, Quebec ranks as one of the most
supportive mining jurisdictions in the world.
About Osisko
Osisko Mining Corporation
is currently developing the Canadian Malartic gold deposit and adjacent
mineralized zones into a large-scale open pit, bulk-tonnage mining
operation. The Company is well-funded with $825 M in cash resources and
is carrying out an aggressive mine development, reserve definition and
exploration campaign. 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 with
183.3 Mt @ 1.07 g/t Au (proven reserves: 5.16 Mt @ 1.14 g/t Au, probable
reserves: 178.2 Mt @ 1.06 g/t).
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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 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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