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Reuters
Published
Jul 8, 2009
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Osisko gets C$75 mln financing for Malartic project

By
Reuters
Published
Jul 8, 2009

July 7 (Reuters) - Osisko Mining Corp (OSK.TO) on Tuesday 7 July said it closed an agreement in principle with the Societe generale de financement du Quebec (SGF) for a financing of C$75 million ($64.65 million) for development of its Malartic project in Quebec.


Osisko Mining Corp - Photo: www.osisko.com

The Canadian gold miner said financing will be structured as a senior non-guaranteed debenture, convertible at the discretion of the SGF into Osisko shares at a price of C$9.18 per share.

The deal is subject to several conditions and authorizations, including Osisko securing an additional C$225 million of financing.

Osisko said it continues to pursue discussions with financial institutions and strategic partners to complete the required financing for the development of the Malartic gold project. The 6.3-million-ounce Malartic deposit has been one of the most closely watched mining projects in Canada, prompting some analysts to cite Osisko as a likely takeover target for gold majors looking to add to their portfolios.

Shares of the company, which have gained more than 80 percent so far this year, were trading down 5 Canadian cents at C$6.57 on the Toronto Stock Exchange.

($1=1.160 Canadian Dollar)

(Reporting by Chakradhar Adusumilli in Bangalore; Editing by Jarshad Kakkrakandy)

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