VANCOUVER and MONTREAL — Goldcorp of Vancouver has purchased shares and warrants of Montreal’s Osisko Mining in a deal that brings Goldcorp’s holding up to 12.9% of Osisko’s outstanding common shares.
Goldcorp acquired 8.5 million common shares and 4.3 million share purchase warrants on the TSX. Each warrant can be exercised for one common share of Osisko for $5.45 per share until Nov. 17, 2009. Goldcorp says it has acquired the shares as an investment, and that it presently has no plans to increase its holding.
Since Goldcorp acquired these shares and warrants, Osisko entered into a bought deal agreement that will raise between $130 million and $150 million through the sale of shares priced at $7.00 each.
Osisko is developing its 100%-owned Canadian Malartic gold property 20 km west of Val d’Or. The original discovery was made in 1926, and from 1935 to 1965, the deposit produced 1.1 million oz of gold. The property is estimated to contain 6.28 million oz of gold in proven and probable reserves. The company has acquired the 3,000-t/d East Malartic mill that was used to treat ore from Barrick Gold‘s Bousquet mine. Osisko and the Quebec government have signed an agreement for the rehabilitation of the old East Malartic tailings pond.
Detailed information can be read at www.Osisko.com.