MONTREAL, QC, November 26, 2009 - Osisko Mining Corporation (“Osisko” or the “Company”) (TSX:OSK; Deutsche Boerse: EWX) is pleased to announce that it has concluded the first tranche of the previously announced financing agreement with CPPIB Credit Investments Inc. (“CPPIB”), a wholly owned subsidiary of the CPP Investment Board. Osisko has drawn the first tranche of $75 million which will be used for the development of the Canadian Malartic Project. Under the terms of the loan agreement, Osisko may draw up to $150 million in two tranches:
i. Tranche A – An amount of $75 million (which was drawn on November 25, 2009). Osisko previously issued 7 million warrants to CPPIB on September 24, 2009. The warrants are exercisable before September 24, 2014, at a price of $10.75, which represented a 30% premium to the 15 day volume weighted average price (“VWAP”). Proceeds are being used for the development of the Canadian Malartic Project.
ii. Tranche B – An amount of $75 million may be drawn on March 31, 2010, at the discretion of Osisko, for general corporate purposes. If the amount is drawn, CPPIB would receive an additional 5.5 million warrants having a 5-year term at similar terms to those issued in connection with Tranche A.
The loan carries an interest rate of 7.5% per annum, and is secured against substantially all of the assets of the Company. Drawdown under the financing agreement for Tranche B is subject to the satisfaction of certain conditions precedent. Osisko has the right of first refusal in the event that CPPIB chooses to sell its warrants prior to exercise. Osisko may accelerate the exercise of the warrants if the shares of Osisko trade at a 50% premium to the exercise price for a period of 15 days.
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 of 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 (including the Barnat deposit) a measured and indicated resource of 3.65 million ounces and an inferred resource of 0.84 million ounces.
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 June 30, 2009, the CPP Fund totaled $116.6 billion. For more information about the CPP Investment Board, please visit www.cppi b.ca.
