Canadian Mining Journal

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GOLD DEVELOPMENT: Osisko raises $350M for Malartic project

QUEBEC - Osisko Mining of Montreal is raising close to $350 million dollars, the net proceeds of which will be used...



QUEBECOsisko Mining of Montreal is raising close to $350 million dollars, the net proceeds of which will be used to develop its Malartic gold project. A syndicate of underwriters led by Thomas Weisel Partners Canada and BMO Capital Markets, has agreed to buy 77.0 million units and resell them to the public at a price of $4.55 per unit. Each unit consists of one common share and one-half a common share purchase warrant. Each full warrant will allow the holder to purchase an additional Osisko common share at a price of $5.45 until Nov. 17, 2009.

 

The offer is expected to close on or about Feb. 25, 2009. Osisko also granted the underwrites an over-allotment option to purchase an additional 11.5 million units at the same price within 30 days of closing. If the over-allotment is exercised, gross proceeds will be $402.9 million.

  

The bought deal was originally announced on Feb. 3 for 48.5 million units. The offering was increased just a day later, on Feb 4.

 

Detailed plans for the Malartic project are posted at www.Osisko.com.


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