MONTREAL — Calling it a "strategic investment", Osisko Mining has agreed to purchase $3.0 million of a proposed $4.2 million non-brokered private placement offered by Bowmore Exploration. The completed transaction will give Osisko a 39.8% stake in Bowmore.
Bowmore currently has an option to acquire a 100% interest in the Santa Elvira gold-copper property in Mexico, which is of interest to Osisko. The proceeds from the private placement will be used exploration work on that property, new project acquisitions, development and for working capital purposes.
Osisko's primary business objective is the exploration and development of the flagship Canadian Malartic gold deposit in Quebec. Osisko has also identified a number of grassroots gold exploration opportunities in Canada and has selected Bowmore as an exploration partner to advance these projects. Osisko intends to involve Bowmore in exploration projects that would not be suitable for Osisko given its focus on the Canadian Malartic gold deposit, and thereby reduce Osisko's exploration risk.
Robert Wares, executive VP and COO of Osisko is currently a director of Bowmore. Pursuant to the private placement, Osisko will have the right to appoint a second nominee to Bowmore's five member board. The placement, following approvals, is expected to close on July 31, 2009.
Details about the Santa Elvira project in the Sierra Madres Gold Belt is available at www.BowmoreExploraton.com.
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