/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
Trading Symbol: TSX: OSK
TORONTO, Aug. 29, 2017 /CNW/ - Osisko Mining Inc.
(TSX:OSK) ("Osisko" or the "Corporation") is pleased to announce
that it has entered into an agreement with a syndicate of
underwriters led by Canaccord Genuity Corp. (collectively, the
"Underwriters") to complete a two-tranche private placement
financing (the "Offering"), on a "bought deal" basis, of an
aggregate of 7,402,000 common shares of the Corporation that will
qualify as "flow-through shares" (within the meaning of subsection
66(15) of the Income Tax Act (Canada)) (collectively, the "Flow-Through
Shares") for aggregate gross proceeds of C$50,008,950. The first tranche will consist of
5,773,000 Flow-Through Shares at an issue price of C$6.93 per Flow-Through Share (the "Tranche One
Issue Price") for gross proceeds of C$40,006,890. The second tranche will consist of
1,629,000 Flow-Through Shares at an issue price of C$6.14 per Flow-Through Share (the "Tranche Two
Issue Price") for gross proceeds of C$10,002,060.
In addition, the Underwriter will have the option, exercisable
in whole or in part at any time prior to the closing of the
Offering, to increase the size of the Offering in Tranche One by up
to an additional 865,950 Flow-Through Shares at the Tranche One
Issue Price and in Tranche Two by up to an additional 244,350
Flow-Through Shares at the Tranche Two Issue Price.
The gross proceeds of the Offering will be used to fund
"Canadian exploration expenses" (within the meaning of the
Income Tax Act (Canada))
related to Osisko's projects in Québec on or prior to December 31, 2018 for renunciation to subscribers
of Flow-Through Shares effective December
31, 2017.
The Offering is expected to close on or about October 5, 2017 and is subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals including the approval of the Toronto Stock
Exchange and the applicable securities regulatory authorities. The
Offering is being made by way of private placement in Canada. The Flow-Through Shares will not be
offered or sold in the United
States. The Flow-Through Shares issued under the Offering
will be subject to a hold period expiring four months and one day
from the closing date of the Offering.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent
registration or an applicable exemption from the registration
requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any
sale of the securities in any State in which such offer,
solicitation or sale would be unlawful.
About Osisko Mining Inc.
Osisko is a mineral exploration company focused on the
acquisition, exploration, and development of precious metal
resource properties in Canada.
Osisko holds a 100% in the high-grade Windfall Lake gold deposit
located between Val-d'Or and
Chibougamau in Québec and holds a
100% undivided interest in a large area of claims in the
surrounding Urban Barry area (82,400
hectares), a 100% interest in the Marban project located in the
heart of Québec's prolific Abitibi gold mining district, and
properties in the Larder Lake Mining Division in northeast
Ontario, including the Garrcon and
Jonpol zones on the Garrison property, the Buffonta past producing
mine and the Gold Pike mine property. The Corporation also holds
interests and options in a number of additional properties in
northern Ontario. Osisko continues
to be well financed and has approximately $190 million in cash and equity
investment.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information"
within the meaning of the applicable Canadian securities
legislation that is based on expectations, estimates and
projections as at the date of this news release. The information in
this news release about the Offering; the use of the gross proceeds
from the Offering; the jurisdictions in which the Flow-Through
Shares are offered or sold; the number of Flow-Through Shares
offered or sold; the gross proceeds from the Offering; the timing
and ability of the Corporation to close the Offering, if at all;
the timing and ability of the Corporation to satisfy the customary
listing conditions of the Toronto Stock Exchange, if at all; the
timing and ability of the Corporation to obtain all necessary
approvals; the terms of the concurrently announced private
placement of units of the Corporation; and any other
information herein that is not a historical fact may be
"forward-looking information". Any statement that involves
discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions, future events or
performance (often but not always using phrases such as "expects",
or "does not expect", "is expected", "anticipates" or "does not
anticipate", "plans", "budget", "scheduled", "forecasts",
"estimates", "believes" or "intends" or variations of such words
and phrases or stating that certain actions, events or results
"may" or "could", "would", "might" or "will" be taken to occur or
be achieved) are not statements of historical fact and may be
forward-looking information and are intended to identify
forward-looking information. This forward-looking information is
based on reasonable assumptions and estimates of management of
Osisko, at the time it was made, involves known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Osisko to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking information. Such factors include,
among others, risks relating to the Offering; volatility in the
trading price of common shares of the Corporation; risks
relating to the ability of the Corporation to obtain required
approvals, complete definitive documentation and complete the
Offering and concurrently announced offering of units of the
Corporation on the terms announced; ability of Osisko to
complete further exploration activities, including drilling;
property interests; the results of exploration activities; risks
relating to mining activities; the global economic climate; metal
prices; dilution; environmental risks; and community and
non-governmental actions. Although the forward-looking information
contained in this news release is based upon what management
believes, or believed at the time, to be reasonable assumptions,
Osisko cannot assure shareholders and prospective purchasers that
actual results will be consistent with such forward-looking
information, as there may be other factors that cause results not
to be as anticipated, estimated or intended, and neither Osisko nor
any other person assumes responsibility for the accuracy and
completeness of any such forward-looking information. Osisko does
not undertake, and assumes no obligation, to update or revise any
such forward-looking statements or forward-looking information
contained herein to reflect new events or circumstances, except as
may be required by law.
SOURCE Osisko Mining Inc.