QUEBEC - Montreal-based OSISKO EXPLORATION LTD. has created the Fonds Essor Malartic Osisko, a sustainable development fund for the town of Malartic in the northwest part of the province. Osisko plans to make contributions to the fund in cash and Osisko stock that could amount to more than $3 million over the next five years.
The announcement was made in mid-March by Osisko president and CEO Sean Roosen at a press conference held with Malartic Mayor Fernand Carpentier and representatives from local and regional communities.
Said Roosen: "Our mining project will definitely generate major spinoffs for Malartic, but we intend to contribute even more so that our mining project leaves a sustainable legacy for the people of Malartic. After considering several approaches to creating this legacy for Malartic's residents, we decided the fund was the best formula. It's innovative, dynamic and adaptable, and it will allow the people of Malartic to set their own priorities. As far as I know, this formula is a first in Canada's mining industry," Roosen added.
"Osisko is demonstrating that it wants to be a good corporate citizen and assume social responsibility as a business above and beyond the usual standards," said Mayor Carpentier. "Our town is very pleased to welcome this major initiative for our community's long-term future."
No doubt, part of the funding will be necessary to address the situation, reported on Oct. 10, 2007 in the CMJ online news, that the location of Osisko's proposed pit is within the south side of the town of Malartic, and includes residential and industrial buildings that will have to be moved.
Funding will begin when Osisko receives its operating permit and throughout the entire period of mining operations in Malartic. The funding will come in the form of a blend of cash and Osisko shares so the fund can benefit directly from the company's profitability.
The fund will be administered by a board of seven directors, a majority of whom will be drawn from the social, economic and community sectors of Malartic or other communities in Abitibi-Temiscamingue. Osisko will be represented on the board by two of its senior executives. The board will establish appropriate rules of practice, governance and accountability in compliance with the fund's letters patent, by-laws and regulations.
The fund will finance economic development projects, community facilities and infrastructure that will improve the quality of life for Malartic residents. Scholarships and other investments in education will also have an important place.
Osisko Exploration is devoted principally to the development of the Canadian Malartic gold-bearing deposit located at Malartic. With inferred resources of 8.4 million ounces of gold, the Canadian Malartic deposit is one of the largest in Canada. Osisko currently employs approximately 60 people, and this number will increase to over 400 when Canadian Malartic is in full operation.
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