Author: lboivin
OSISKO MINING PROVIDES CORPORATE UPDATE
Toronto, June 5, 2023 – Osisko Mining Inc. (TSX:OSK. “Osisko” or the “Corporation“) would like to provide the following update on the ongoing forest fire situation affecting the communities in Abitibi and Eeyou Istchee James Bay, where the Windfall gold project is located. On June 2 and 3, 2023, Quebec’s Ministry of Natural Resource and Forests announced prohibitions regarding forest access on Crown lands, and closed forestry roads for reasons of public safety, given the current situation related to wildfires in the Abitibi and Eeyou Istchee James Bay regions.
John Burzynski, Chairman and Chief Executive Officer of Osisko Mining commented: “We have withdrawn our staff and continue to monitor our facilities remotely and on the ground in accordance with local directives. Our team is in constant communication with local and provincial authorities to coordinate all efforts in this difficult time. All personnel are safe, and the Windfall facilities are secure. While all activities at site are currently suspended, we do not anticipate any material impact on our business.”
Osisko will update the market in the event of any material change to Osisko arising in relation to the wildfires.
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 50% interest in the high-grade Windfall gold deposit located between Val-d’Or and Chibougamau in Québec and holds a 50% interest in a large area of claims in the surrounding Urban Barry area and nearby Quévillon area (over 2,300 square kilometers).
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, projections and interpretations as at the date of this news release. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always, using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “anticipates” or “does not anticipate”, “plans”, “scheduled”, “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 news release contains the forward-looking information pertaining to, among other things: the potential impact of wildfires on our business, operations or assets; the impact of the wildfires and regulatory responses thereto on the business of Osisko the prospects, if any, of the Windfall gold deposit; the ability to realize upon any mineralization in a manner that is economic; the amount and type of drilling to be completed and the timing to complete such drilling; future drilling and advancement at the Property.
Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information include, among others, risks relating to the ability of exploration activities (including drill results) to accurately predict mineralization; errors in management’s geological modelling; the ability to continue current operations and exploration; risks relating to exploration, development and mining activities; reliance on third-parties for infrastructure, including power lines; 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 of securities of the Corporation 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.
For further information please contact:
John Burzynski
Chief Executive Officer
Telephone (416) 363-8653
OSISKO MINING AND GOLD FIELDS ANNOUNCE 50/50 JOINT VENTURE ON WINDFALL GOLD PROJECT
Osisko Fully-Funded to Mine Production
Project to Benefit From Mine Building and Operating Experience of a Senior Gold Producer
Significant Investment by Gold Fields Validates Quality and Robustness of Windfall
(Toronto, May 2, 2023) Osisko Mining Inc. (OSK:TSX. “Osisko” or the “Corporation“) is pleased to announce it has concluded a 50/50 joint venture agreement with a subsidiary of Gold Fields Limited (“Gold Fields“) for the joint ownership and development of Osisko’s Windfall gold project, located in the Abitibi greenstone belt, Urban Township, Eeyou Istchee James Bay, Québec (the “Transaction“).
Transaction Highlights
- Gold Fields initial cash payment to Osisko of C$300 million on signing.
- Gold Fields additional (“Deferred”) cash payment to Osisko of C$300 million on issuance of the applicable permits authorizing the construction, operation and mining of the Windfall Project.
- Gold Fields to sole fund expenditures for regional exploration up to a maximum of C$75 million, after which regional exploration programs would be proportionately funded by each of Osisko and Gold Fields.
- In addition to the initial cash payment and the Deferred cash payment, Gold Fields to make two additional separate C$17 million cash payments to Osisko (C$34 million in total, the first on July 31, 2023 and the second on December 31, 2023). These represent reimbursement of items already incurred by Osisko as part of pre-construction spend.
- Gold Fields and Osisko share all pre-construction costs (provisional budget estimated at C$250 million) and construction costs (feasibility capital expenditure estimated at C$789 million) on a 50/50 basis going forward.
- Governance arrangements with equal representation in the Partnership from Osisko and Gold Fields, to leverage each party’s skillsets.
Osisko’s Chairman and Chief Executive Officer, John Burzynski, stated: “We are very pleased to partner with Gold Fields on the Windfall project and our exploration property portfolio. Today is the start of what we believe will prove to be a long and fruitful partnership with Gold Fields at Windfall, and in what we both believe is a significant emerging gold district in Québec. This partnership further strengthens our strong balance sheet, allows us to significantly de-risk Windfall and brings us a very important step closer to realizing our objective of becoming a leading Canadian gold producer. With the proceeds from this Transaction, Osisko is fully-funded for our share of development capital to bring Windfall into production. Osisko shareholders retain considerable upside in the project while also benefiting from the mine building, operating and technical expertise of Gold Fields. Assuming the project is ultimately permitted and approved by the partners consistent with the Windfall Feasibility Study, Gold Fields’ acquisition cost, exploration commitment, and contribution to pre-construction and project capital would ultimately represent an investment of C$1.2 billion to acquire its interest, bring Windfall into production and further unlock the regional exploration upside. This Transaction is highly compelling on many fronts and represents the best path forward to maximize value for all stakeholders.”
Mr. Burzynski continued: “Osisko Mining would like to acknowledge and thank Sean Roosen in particular and the directors of Osisko Gold Royalties Ltd. (“OGR”) for their forward-looking vision in supporting the 2015 re-creation of Osisko Mining – one of the key first investment decisions in OGR’s very innovative and successful “accelerator model” concept to create new high-value negative-cost royalties tied to equity investment in new exploration companies. OGR holds a 2% – 3% NSR royalty on the Windfall area claims and 13% of the undiluted equity in the Corporation.”
Transaction Details
The Transaction closed on May 2, 2023, with Gold Fields acquiring a 50% partnership interest in the “Windfall Mining Group”, a partnership formed under the laws of the Province of Ontario (the “Partnership“), which will develop the Windfall project and the surrounding Urban Barry and Quévillon exploration properties (collectively, the “Property“). The Transaction was implemented in accordance with, among other things, a framework agreement dated May 2, 2023 (the “Framework Agreement“) among Osisko, Gold Fields, Gold Fields Holdings Company Limited, Windfall Mining Group and 1000516419 Ontario Inc., the manager of the Partnership (the “Manager“). Pursuant to the terms of the Framework Agreement, Gold Fields acquired 50% interest in the Partnership for an aggregate consideration of C$600 million in cash to Osisko. The Partnership Agreement also requires Gold Fields to sole fund up to C$75 million in contributions to the Partnership for regional exploration. Prior to the acquisition of the 50% Partnership interest by Gold Fields, Osisko had contributed to the Partnership the Property together with any claims, permits, leases, all other real property, personal property, contractual rights and other assets currently held or acquired for the benefit of the Property.
The Framework Agreement contains customary representations and warranties, covenants and indemnification provisions for a transaction of this nature. The obligations of Gold Fields are guaranteed by Gold Fields Holdings Company Ltd, a significant intermediate holding company with material indirect interests in a number of Gold Fields operations.
About Windfall Mining Group
The business and affairs of the Partnership are managed by the Manager, which has the exclusive right to act on behalf of the Partnership. Each of Osisko and Gold Fields holds 50% of the common shares in the Manager, as well as a 50% partnership interest in the Partnership (apart from a nominal interest in the Partnership held by the Manager).
The relationship among the parties is governed by a second amended and restated partnership agreement (the “Partnership Agreement“) and a shareholders’ agreement (together with the Partnership Agreement, the “Governing Documents“). The Governing Documents contain customary transfer rights restrictions, governance and decision-making mechanisms which are typical in a transaction of this nature. The Partnership Agreement contains provisions relating to programs and budgets in respect of the Property, funding obligations and remedies for breaches of funding obligations, cost overruns as well as a mutual standstill.
Advisors
Maxit Capital LP acted as financial advisor to Osisko and Bennett Jones LLP acted as Osisko’s legal counsel.
About the Windfall Gold Deposit
The Windfall gold deposit is located between Val-d’Or and Chibougamau in the Abitibi region of Québec, Canada. The mineral resource estimate on Windfall (with an effective date of June 7, 2022 ) (the “Windfall Resource Estimate”) and the mineral reserve estimate on Windfall (with an effective date of November 25, 2022) (the “Windfall Reserve Estimate”) are described in the technical report entitled “Feasibility Study for the Windfall Project, Eeyou Istchee James Bay, Québec, Canada” and dated January 10, 2023 (with an effective date of November 25, 2022) (the “FS Technical Report”). The Windfall Resource Estimate, assuming a cut-off grade of 3.50 g/t Au, comprises 811,000 tonnes at 11.4 g/t Au (297,000 ounces) in the measured mineral resource category, 10,250,000 tonnes at 11.4 g/t Au (3,754,000 ounces) in the indicated mineral resource category and 12,287,000 tonnes at 8.4 g/t Au (3,337,000 ounces) in the inferred mineral resource category. The Windfall Reserve Estimate, assuming 3.5 g/t operating, 2.5 g/t incremental, and 1.7 g/t development cut-off grade, comprises 12,183,000 tonnes at 8.06 g/t Au (3,159,000 ounces) in the probable mineral reserves category. The key assumptions, parameters, limitations and methods used in the feasibility study for Windfall, including the related Windfall Resource Estimate and Windfall Reserve Estimate, are described in the FS Technical Report, which was prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The FS Technical Report is available on SEDAR (www.sedar.com) under Osisko’s issuer profile. The Windfall gold deposit is currently one of the highest-grade resource-stage gold projects in Canada and has world-class scale. Mineralization occurs in three principal areas: Lynx, Main, and Underdog. Mineralization is generally comprised of sub-vertical lenses following intrusive porphyry contacts plunging to the northeast. The resources are defined from surface to a depth of 1,600 metres, including the Triple 8 (TP8) zone. The reserves are defined from surface to a depth of 1,100 metres. The deposit remains open along strike and at depth. Mineralization has been identified at surface in some areas and as deep as 2,625 metres in others with significant potential to extend mineralization down-plunge and at depth.
About Osisko Mining Inc.
Osisko is a mineral exploration company focused on the acquisition, exploration, and development of precious metal resource properties in Canada. Subsequent to this announcement, Osisko holds a 50% interest in the high-grade Windfall gold deposit located between Val-d’Or and Chibougamau in Québec and a 50% interest in a large area of claims in the surrounding Urban Barry area and nearby Quévillon area (over 2,300 square kilometres).
About Gold Fields
Gold Fields is a globally diversified gold producer with nine operating mines in Australia, South Africa, Ghana (including the Asanko JV) and Peru and one construction project in Chile. It has total attributable annual gold-equivalent production of 2.40Moz, proved and probable gold Mineral Reserves of 46.1Moz, measured and indicated gold Mineral Resources of 31.1Moz (excluding Mineral Reserves) and inferred Gold Mineral Resources of 11.2Moz (excluding Mineral Reserves). Gold Fields shares are listed on the Johannesburg Stock Exchange (JSE) and its American depositary shares trade on the New York Exchange (NYSE).
Qualified Person
The scientific and technical content in this news release has been reviewed and approved by Mr. Mathieu Savard, P.Geo (OGQ #510), President of Osisko, who is a “qualified person” (within the meaning of NI 43-101).
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, projections and interpretations as at the date of this news release. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always, using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “potential”, “feasibility”, “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 news release contains the forward-looking information pertaining to, among other things: the timing and ability of the Partnership to obtain all other authorizations needed to begin the construction and operations at Windfall; the timing (if at all) of the payment of the Deferred Payment Amount; the timing and ability for the Property to reach a construction decision; the ability of Osisko to realize on the benefit of the Transaction; the impact on Osisko of the disposition of ownership interest and control in the Property and Contributed Assets; the estimated costs required to reach a construction decision in respect of the Property; receipt of a positive recommendation for the Windfall environmental impact assessment; the ability and timing for the parties to fund cash calls to advance the development of the Property and pursue planned exploration and development; the Windfall gold deposit being one of the highest-grade resource-stage gold projects in Canada and having world-class scale; the key assumptions, parameters, limitations and methods used in the FS Technical Report, including the related Windfall Resource Estimate and Windfall Reserve Estimate; the prospects, if any, of the Windfall gold deposit; the ability to realize upon any mineralization in a manner that is economic; the amount and type of drilling to be completed and the timing to complete such drilling; the potential to extend mineralization down-plunge and at depth; the ability of exploration work (including drilling) to accurately predict mineralization; upgrading an inferred mineral resource to a measured mineral resource or indicated mineral resource category; future drilling and advancement at the Property.
Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from such forward-looking information include, among others, risks relating to the ability of exploration activities (including drill results) to accurately predict mineralization; errors in management’s geological modelling; the ability of the Partnership to complete further exploration activities, including (infill) drilling, or further development of the Property; the ability to continue current operations and exploration; property and royalty interests in the Windfall gold deposit; the ability and timing to obtain required approvals for the advancement of the Property; regulatory framework; the results of exploration activities; risks relating to exploration, development and mining activities; reliance on third-parties for infrastructure, including power lines; the global economic climate; capital market conditions; Osisko’s, Gold Field’s and the Partnership’s ability to access capital and obtain project financing; 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 of securities of the Corporation 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.
CONTACT INFORMATION:
John Burzynski
Chairman and Chief Executive Officer
Telephone (416) 363-8653
OSISKO MINING INC. AMENDS OMNIBUS PLAN
Toronto, Ontario (May 1, 2023) – Osisko Mining Inc. (TSX:OSK) (the “Corporation” or “Osisko“) announces that its Board of Directors has approved minor amendments to the omnibus equity incentive plan of the Corporation (the “Omnibus Plan“), which is proposed for approval by the shareholders of the Corporation at Osisko’s annual and special meeting of shareholders to be held on May 29, 2023 (the “Meeting“), to address comments from ISS Proxy Advisory Services on the Omnibus Plan.
The Omnibus Plan, the adoption of which shareholder approval is being sought at the Meeting, has been amended to include language in Section 7.3(2) of the Omnibus Plan to require shareholder approval for the following:
- any amendment to the non-transferability of awards set out in Section 6.1(6) (General Conditions Applicable to Awards – Non-Transferrable Awards) of the Omnibus Plan; and
- any amendment to Article 7 (Adjustments and Amendments) of the Omnibus Plan.
These amendments will be included in the Omnibus Plan proposed to be considered and voted upon by shareholders at the Meeting.
For further information on the Corporation, please contact:
John Burzynski
Chief Executive Officer
Telephone: (416) 363-8653
The Corporation’s head office is located at 155 University Avenue, Suite 1440, Toronto, Ontario M5H 3B7.
OSISKO MINING INC. FILES EARLY WARNING REPORT
Toronto, Ontario (March 30, 2023) – Osisko Mining Inc. (TSX:OSK) (the “Corporation” or “Osisko“) announces that in accordance with regulatory requirements it has filed an early warning report in respect of its holdings in Vior Inc. (“Vior“). In connection with private placement (the “Private Placement“) by Vior of flow-through common shares on March 30, 2023, Osisko acquired from the initial subscribers in the Private Placement an aggregate of 6,983,765 common shares in the capital of Vior (the “Common Shares“) at a price of $0.145 per Common Share for an aggregate purchase price of $1,012,645.84 (the “Acquisition“).
Immediately following the completion of the Acquisition, Osisko has beneficial ownership of, or control and direction over 13,831,764 Common Shares and 1,224,000 Warrants representing approximately 13.6% of the issued and outstanding Common Shares on a non-diluted basis (approximately 14.7% on a partially diluted basis, assuming the exercise of all Warrants held by Osisko) after giving effect to the Private Placement.
Osisko acquired the securities of Vior for investment purposes and intends to review, on a continuous basis, various factors related to this investment, and may decide to purchase additional securities of Vior or may decide in the future to sell all or part of its investment, as future circumstances may dictate.
This news release is being issued in accordance with National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues in connection with the filing of an early warning report dated March 30, 2023. The early warning report in respect of the Acquisition has been filed on SEDAR (www.sedar.com) under Vior’s issuer profile. To obtain a copy of the early warning report filed by the Corporation, please contact John Burzynski at (416) 363-8653 or refer to SEDAR (www.sedar.com) under Vior’s issuer profile.
For further information on the Corporation, please contact:
John Burzynski
Chief Executive Officer
Telephone: (416) 363-8653
The Corporation’s head office is located at 155 University Avenue, Suite 1440, Toronto, Ontario M5H 3B7.
OSISKO SUBMITS WINDFALL ENVIRONMENTAL IMPACT ASSESMENT
(Toronto, March 29, 2023) Osisko Mining Inc. (OSK:TSX. “Osisko” or the “Corporation”) is pleased to announce that it has submitted the Environmental Impact Assessment Report for its Windfall project (“Windfall EIA”) to the Environmental and Social Impact Review Committee (“COMEX”). The Windfall project is located in the Abitibi greenstone belt, Urban Township, Eeyou Istchee James Bay, Québec entirely on the traditional land of the Cree First Nation of Waswanipi.
The Windfall EIA was prepared by WSP Canada Inc. with contributions from Arkéos Inc., GCM Consultants, BBA Inc., Entech and Aviseo, each of which is an independent firm and realized in accordance with the Directive issued by the Ministère de l’Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs (“MELCCFP”). These contributors provided technical inputs for the study, collected survey data and compilations in all fields required to evaluate the project impacts. Windfall EIA and all supporting documents are available on the Corporation’s website at www.osiskomining.com. The Windfall EIA was coordinated by Vanessa Milette, Osisko’s Director of Environment, under the supervision of Andréanne Boisvert, Osisko’s Vice-President of Environment and Community Relations.
The Windfall project is located south of the 55th parallel in the territory governed by the James Bay and Northern Québec Agreement (JBNQA), which is subject to the COMEX. The COMEX is an independent body composed of members appointed by the governments of Québec and the Cree Nation, which is responsible for the assessment and review of the social and environmental impacts of the Windfall project. Upon completion of the project review, the COMEX will issue a recommendation to the Deputy Minister of Québec’s MELCCFP. Should a positive recommendation be granted by the COMEX, the Deputy Minister would then issue a Certificate of Authorization pursuant to section 164 of Québec’s Environment Quality Act for the Windfall project. The issuance of such Certificate of Authorization is a pre-condition to Osisko applying for the other authorizations required to begin the construction of, and operations at, the Windfall site.
The Windfall EIA covers 18 fields of study from impacts on water, air and vegetation to impacts on regional and provincial economies. The following represents some of the highlights1 of the study as related to benefits to local communities and governments:
- The creation of 17,120 full-time equivalent jobs in Québec by 2035 (direct and indirect jobs), of which 10,256 would be directly in Abitibi-Temiscamingue and Nord-du-Québec regions.
- Robust water management planning using a state-of-the-art water treatment plant integrated into the proposed future development plan
- A tailings management facility designed to the highest modern industry standards
- $3.5 billion of investment2 for construction, sustaining costs and operations by 2035, with an additional $83 million reserved for future closure costs
- $2.3 billion of contribution to Québec’s GDP by 2035
- Gross provincial tax revenues for Québec estimated at $712 million (including mining duties), and $333 million gross federal tax revenues by 20353
- An estimated $68 million in local property taxes and school tax revenues by 2035
Notes on the Windfall EIA highlights
1)-Economic and fiscal impacts including contribution to Québec’s GDP were determined by Aviseo Conseil by applying EcoTec’s cross-sector (input-output) model. Estimation of corporate income tax, mining duties, local property and school tax were estimated based on the FS Technical Report (as defined herein), a copy of which is available on SEDAR (www.sedar.com) under Osisko’s issuer profile. All monetary amounts are reported in Canadian dollars. Details about methodology or main hypothesis are described in Windfall EIA and are based on FS Technical Report. 2)-The cumulative $3.5 billion of investments includes Initial Capex of $788 million, Sustaining Capex of $588 million and cumulative operation costs over LOM of $2,134 million based on FS Technical Report.3) -Gross provincial tax estimated contributions includes workers personal income taxes, health services funds and sales taxes while gross federal tax contributions includes workers personal income taxes.
Osisko’s Chairman and Chief Executive Officer, John Burzynski, stated: “Today’s Windfall Project EIA submission constitutes a significant milestone in realizing our goal of creating a new producing gold mine in Eeyou Istchee James Bay. This submission begins the permitting and authorization process for the Windfall gold project. Osisko enters this process fully aware of the importance of the promoter’s role and responsibilities during the COMEX review process. The Corporation is committed to transparently delivering an environmentally sound, robust project for all stakeholders, and to provide all project information requested in a timely matter. We would like to thank our host communities the Cree First Nation of Waswanipi and Lebel-sur-Quévillon for their continuous support, and we thank our employees and consultants for their diligent work in delivering this extensive Windfall EIA.”
About the Windfall Gold Deposit
The Windfall gold deposit is located between Val-d’Or and Chibougamau in the Abitibi region of Québec, Canada. The mineral resource estimate on Windfall (with an effective date of June 7, 2022 ) (the “Windfall Resource Estimate”) and the mineral reserve estimate on Windfall (with an effective date of November 25, 2022) (the “Windfall Reserve Estimate”) are described in the technical report entitled “Feasibility Study for the Windfall Project, Eeyou Istchee James Bay, Québec, Canada” and dated January 10, 2023 (with an effective date of November 25, 2022) (the “FS Technical Report”). The Windfall Resource Estimate, assuming a cut-off grade of 3.50 g/t Au, comprises 811,000 tonnes at 11.4 g/t Au (297,000 ounces) in the measured mineral resource category, 10,250,000 tonnes at 11.4 g/t Au (3,754,000 ounces) in the indicated mineral resource category and 12,287,000 tonnes at 8.4 g/t Au (3,337,000 ounces) in the inferred mineral resource category. The Windfall Reserve Estimate, assuming 3.5 g/t operating, 2.5 g/t incremental, and 1.7 g/t development cut-off grade, comprises 12,183,000 tonnes at 8.06 g/t Au (3,159,000 ounces) in the probable mineral reserves category. The key assumptions, parameters, limitations and methods used in the feasibility study for Windfall, including the related Windfall Resource Estimate and Windfall Reserve Estimate, are described in the FS Technical Report, which was prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The FS Technical Report is available on SEDAR (www.sedar.com) under Osisko’s issuer profile. The Windfall gold deposit is currently one of the highest-grade resource-stage gold projects in Canada and has world-class scale. Mineralization occurs in three principal areas: Lynx, Main, and Underdog. Mineralization is generally comprised of sub-vertical lenses following intrusive porphyry contacts plunging to the northeast. The resources are defined from surface to a depth of 1,600 metres, including the Triple 8 (TP8) zone. The reserves are defined from surface to a depth of 1,100 metres. The deposit remains open along strike and at depth. Mineralization has been identified at surface in some areas and as deep as 2,625 metres in others with significant potential to extend mineralization down-plunge and at depth.
Qualified Person
The scientific and technical content in this news release has been reviewed and approved by Mr. Mathieu Savard, P.Geo (OGQ #510), President of Osisko, who is a “qualified person” (within the meaning of NI 43-101).
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% interest in the high-grade Windfall 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 and nearby Quévillon area (over 2,300 square kilometres).
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, projections and interpretations as at the date of this news release. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always, using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “potential”, “feasibility”, “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 news release contains the forward-looking information pertaining to, among other things: receipt of a positive recommendation for the Windfall EIA; the ability of the Corporation to obtain all other authorizations needed to begin the construction and operations at Windfall; the benefits to local communities and governments contained in the Windfall EIA; the Windfall gold deposit being one of the highest-grade resource-stage gold projects in Canada and having world-class scale; the key assumptions, parameters, limitations and methods used in the FS Technical Report, including the related Windfall Resource Estimate and Windfall Reserve Estimate; the prospects, if any, of the Windfall gold deposit; the ability to realize upon any mineralization in a manner that is economic; the amount and type of drilling to be completed and the timing to complete such drilling; the potential to extend mineralization down-plunge and at depth; the ability of exploration work (including drilling) to accurately predict mineralization; upgrading an inferred mineral resource to a measured mineral resource or indicated mineral resource category; future drilling and advancement at the Windfall gold deposit. Such factors include, among others, risks relating to the ability of exploration activities (including drill results) to accurately predict mineralization; errors in management’s geological modelling; the ability of Osisko to complete further exploration activities, including (infill) drilling, or further development of the Windfall Project; the ability to continue current operations and exploration; property and royalty interests in the Windfall gold deposit; the ability and timing of the Corporation to obtain required approvals; regulatory framework; the results of exploration activities; risks relating to exploration, development and mining activities; reliance on third-parties for infrastructure, including power lines; the global economic climate; capital market conditions and the Corporation’s ability to access capital on terms acceptable to the Corporation; 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 of securities of the Corporation 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.
CONTACT INFORMATION:
John Burzynski
Chief Executive Officer
Telephone (416) 363-8653
OSISKO ANNOUNCES DEFINITIVE AGREEMENT WITH MIYUUKAA TO TRANSPORT HYDROELECTRIC POWER TO WINDFALL PROJECT
Hook-up expected Q1-2024
(Toronto, March 16, 2023) Osisko Mining Inc. (OSK:TSX. “Osisko” or the “Corporation”) is pleased to announce that it has concluded the previously announced binding term sheet agreement and signed a definitive agreement with Miyuukaa Corp. (“Miyuukaa”), a wholly-owned corporation of the Cree First Nation of Waswanipi (“CFNW”), with respect to the construction of proposed transmission facilities and the transport of hydroelectric power to the Windfall Project, located in the Abitibi greenstone belt, Eeyou Istchee James Bay, Québec. The power line from the Waswanipi substation to Windfall is located 100% on CFNW traditional lands covered by the James Bay Northern Québec Agreement.
Miyuukaa will finance, build, own and operate a 69 kV dedicated transmission line that will transport hydroelectricity to the Windfall project. As an end user, Osisko will pay service fees to Miyuukaa. The agreement outlines the general and financial terms of the agreement between Osisko and Miyuukaa, which is for the purpose of ensuring delivery of hydroelectricity over the life of the planned Windfall mill as required.
Construction work commenced during the first quarter of 2023 and is projected to take 12 months to complete, with the hook-up date anticipated in Q1 2024.
This agreement solidifies the collaborative approach between Osisko and the CFNW to sustainably develop energy infrastructure, which will create robust employment opportunities for members of the CFNW. Using hydroelectric power through the final stages of exploration and throughout the planned construction and operations phases will reduce greenhouse gas emissions and the Windfall Project’s dependency on fossil fuels.
About the Windfall Gold Deposit
The Windfall gold deposit is located between Val-d’Or and Chibougamau in the Abitibi region of Québec, Canada. The mineral resource estimate on Windfall (with an effective date of June 7, 2022 ) (the “Windfall Resource Estimate”) and the mineral reserve estimate on Windfall (with an effective date of November 25, 2022) (the “Windfall Reserve Estimate”) are described in the technical report entitled “Feasibility Study for the Windfall Project, Eeyou Istchee James Bay, Québec, Canada” (the “FS Technical Report”) and dated January 10, 2023 (with an effective date of November 25, 2022). The Windfall Resource Estimate, assuming a cut-off grade of 3.50 g/t Au, comprises 811,000 tonnes at 11.4 g/t Au (297,000 ounces) in the measured mineral resource category, 10,250,000 tonnes at 11.4 g/t Au (3,754,000 ounces) in the indicated mineral resource category and 12,287,000 tonnes at 8.4 g/t Au (3,337,000 ounces) in the inferred mineral resource category. The Windfall Reserve Estimate, assuming 3.5 g/t operating, 2.5 g/t incremental, and 1.7 g/t development cut-off grade, comprises 12,183,000 tonnes at 8.06 g/t Au (3,159,000 ounces) in the probable mineral reserves category. The key assumptions, parameters, limitations and methods used in the Feasibility Study for Windfall, including the related Windfall Resource Estimate and Windfall Reserve Estimate, are described in a technical report (the “FS Technical Report”), which was prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The FS Technical Report is available on SEDAR (www.sedar.com) under Osisko’s issuer profile. The Windfall gold deposit is currently one of the highest-grade resource-stage gold projects in Canada and has world-class scale. Mineralization occurs in three principal areas: Lynx, Main, and Underdog. Mineralization is generally comprised of sub-vertical lenses following intrusive porphyry contacts plunging to the northeast. The resources are defined from surface to a depth of 1,600 metres, including the Triple 8 (TP8) zone. The reserves are defined from surface to a depth of 1,100 metres. The deposit remains open along strike and at depth. Mineralization has been identified at surface in some areas and as deep as 2,625 metres in others with significant potential to extend mineralization down-plunge and at depth.
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% interest in the high-grade Windfall gold deposit located between Val-d’Or and Chibougamau in Québec and holds a 100% undivided interest in a large area of claims surrounding the Urban Barry area and nearby Quévillon area (over 2,300 square kilometres).
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, projections and interpretations as at the date of this news release. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always, using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “potential”, “feasibility”, “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 news release contains the forward-looking information pertaining to, among other things: the timing and ability to construct transmission facilities, and transport hydroelectric power, to Windfall (if at all or for the life of planned Windfall mill); the ability of Miyuuka to provide the service as contemplated under and in accordance with the terms of the definitive agreement; the ability of Osisko to pay service fees in accordance with the terms of the definitive agreement; the anticipated environmental benefits, including a reduction in greenhouse gas emissions, by reducing dependency on fossil fuels; the timing and ability to complete the construction a transmission line by Q1 2024 (if at all); the ability and timing of Osisko to construct the planned Windfall mill (if at all); the availability of power being significantly advantageous to Osisko from cost and environmental perspectives; the creation of robust jobs for the region or for member of the CNFW; the Windfall gold deposit being one of the highest-grade resource-stage gold projects in Canada and having world-class scale; the key assumptions, parameters, limitations and methods used in the FS Technical Report, including the related Windfall Resource Estimate and Windfall Reserve Estimate; the prospects, if any, of the Windfall gold deposit; the ability to realize upon any mineralization in a manner that is economic; the amount and type of drilling to be completed and the timing to complete such drilling; the trend of grade increase; the Lynx, Main and Underdog zones remaining open to expansion down plunge and at depth; the ability of exploration work (including drilling) to accurately predict mineralization; upgrading an inferred mineral resource to a measured mineral resource or indicated mineral resource category; future drilling and advancement at the Windfall gold deposit; the significance of historic exploration activities and results. Such factors include, among others, risks relating to the ability of exploration activities (including drill results) to accurately predict mineralization; errors in management’s geological modelling; the ability of Osisko to complete further exploration activities, including (infill) drilling, or further development of the Windfall Project; the ability to continue current operations and exploration; property and royalty interests in the Windfall gold deposit; the ability and timing of the Corporation to obtain required approvals; regulatory framework; the results of exploration activities; risks relating to exploration, development and mining activities; reliance on third-parties for infrastructure, including power lines; the global economic climate; capital market conditions and the Corporation’s ability to access capital on terms acceptable to the Corporation; 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 of securities of the Corporation 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.
CONTACT INFORMATION:
John Burzynski
Chief Executive Officer
Telephone (416) 363-8653
OSISKO MINING CLOSES C$100 MILLION “BOUGHT DEAL” PRIVATE PLACEMENT OF UNITS, INCLUDING FULL EXERCISE OF THE UNDERWRITERS’ OPTION
(Toronto, February 28, 2023) – Osisko Mining Inc. (TSX:OSK) (“Osisko” or the “Corporation”) is pleased to announce the completion of its previously announced “bought deal” private placement of an aggregate of 32,260,000 units of the Corporation (the “Units”) at a price of C$3.10 per Unit for aggregate gross proceeds of approximately C$100 million, including the exercise in full of the underwriters’ option (the “Offering”).
Each Unit consists of one common share of the Corporation and one-half of one common share purchase warrant of the Corporation (each whole common share purchase warrant, a “Warrant”). Each Warrant entitles the holder thereof to acquire one common share of the Corporation for 18 months from the closing of the Offering at a price of C$4.00, subject to adjustment in certain circumstances.
The net proceeds received from the Offering will be used to advance the Corporation’s Windfall Project as well as for working capital and general corporate purposes. The Offering was led by Canaccord Genuity Corp., on behalf of a syndicate of underwriters that included BMO Nesbitt Burns Inc., CIBC World Markets Inc., National Bank Financial Inc., Scotia Capital Inc., Eight Capital, and Haywood Securities Inc.
All securities issued under the Offering will be subject to a hold period expiring four months and one day from the date hereof. The Offering is subject to final acceptance of the Toronto Stock Exchange.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
The following “insiders” of the Corporation have subscribed for Units under the Offering:
Each subscription by an “insider” is considered to be a “related party transaction” for purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Corporation did not file a material change report more than 21 days before the expected closing date of the Offering as the details of the Offering and the participation therein
by each “related party” of the Corporation were not settled until shortly prior to the closing of the Offering, and the Corporation wished to close the Offering on an expedited basis for sound business reasons. The Corporation is relying on exemptions from the formal valuation and
minority shareholder approval requirements available under MI 61-101. The Corporation is exempt from the formal valuation requirement in Section 5.4 of MI 61-101 in reliance on section 5.5(a) of MI 61-101 as the fair market value of the transaction, insofar as it involves interested
parties, is not more than the 25% of the Corporation’s market capitalization. Additionally, the Corporation is exempt from minority shareholder approval requirement in Section 5.6 of MI 61-101 in reliance on Section 5.7(1)(a) of MI 61-101 as the fair market value of the transaction, insofar as it involves interested parties, is not more than the 25% of the Corporation’s market capitalization.
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% interest in the high-grade Windfall 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 and nearby Quévillon area (over 2,400 square kilometres).
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, projections and interpretations as at the date of this news release. The information in this news release about the
use of proceeds of the Offering, the timing and ability of the Corporation, if at all, to obtain final approval of the Offering from the Toronto Stock Exchange 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, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “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 the Corporation at the time such assumptions and estimates were made, and 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 capital markets; the ability of exploration activities (including drill results) to accurately predict mineralization; errors in management’s geological modelling; the ability of Osisko to complete further exploration activities, including drilling; property interests in the Windfall Lake gold project; the ability of the Corporation to obtain required approvals and complete transactions on terms announced; 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 of securities of the Corporation 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.
For further information please contact:
John Burzynski
Chief Executive Officer
Telephone (416) 363-8653
OSISKO MINING CORPORATE UPDATE
(Toronto, February 22, 2023) Osisko Mining Inc. (OSK:TSX. “Osisko” or the “Corporation”) provides the following corporate update.
The Corporation continues to advance work on the Windfall project and surrounding properties, with 15 rigs in total active underground and at surface, performing a combination of infill and exploratory drilling. Detailed engineering has commenced for the planned Windfall operations with the objective of optimizing design and capital expenditures.
The exploration ramp is currently at 640 metres vertical depth, and over 13 kilometres length underground. Nine drills are active on the exploration ramp, and the advance towards the fourth bulk sample (the 800 metre level Lynx 4 sample) is planned to resume in H2 2023.
Osisko is also working towards the conclusion of the definitive agreement with Miyuukaa Corp. (“Miyuukaa”), a wholly-owned corporation of the Cree First Nation of Waswanipi (“CFNW”), with respect to the construction of proposed transmission facilities and the transport of hydroelectric power to the Windfall project. The Kuikuhaacheu transmission line from the Waswanipi substation to Windfall is located 100% on CFNW traditional lands covered by the James Bay Northern Québec Agreement. Finalization of the definitive agreement is expected before the end of this month.
The Corporation remains on schedule to submit its Environmental Impact Assessment report for Windfall (“EIA”) to the Environmental and Social Impact Review Committee (“COMEX”) in Q1 2023. The Corporation also anticipates finalizing the Impact and Benefit Agreement with the Cree First Nation of Waswanipi and the Cree Nation Government before year end 2023.
The Corporation has also begun to receive pre-ordered mill components at the port of Bécancour, Québec. Equipment is being kept in a dry and heated storage facility until required at the Windfall site.
Having completed its Feasibility Study, Osisko has begun the process of reviewing its financing options for the Windfall mine, including ongoing discussions with potential lenders and other strategic alternatives, which may include public and private debt facilities, strategic alliances, partnerships, joint ventures, and other strategic alternatives. Osisko will only provide updates on any such alternatives that advance to the point of requiring disclosure. There can be no assurances that any such arrangements can be agreed on terms acceptable to Osisko.
The recently announced “bought-deal” private placement financing (please see Osisko news release dated February 6th, 2023) is expected to close on February 28th.
Qualified Person
The scientific and technical content in this news release has been reviewed and approved by Mr. Mathieu Savard, P.Geo (OGQ #510), President of Osisko, who is a “qualified person” (within the meaning of NI 43-101).
About the Windfall Gold Deposit
The Windfall gold deposit is located between Val-d’Or and Chibougamau in the Abitibi region of Québec, Canada. The mineral resource estimate on Windfall (with an effective date of June 7, 2022 ) (the “Windfall Resource Estimate”) and the mineral reserve estimate on Windfall (with an effective date of November 25, 2022) (the “Windfall Reserve Estimate”) are described in the technical report entitled “Feasibility Study for the Windfall Project, Eeyou Istchee James Bay, Québec, Canada” (the “FS Technical Report”) and dated January 10, 2023 (with an effective date of November 25, 2022). The Windfall Resource Estimate, assuming a cut-off grade of 3.50 g/t Au, comprises 811,000 tonnes at 11.4 g/t Au (297,000 ounces) in the measured mineral resource category, 10,250,000 tonnes at 11.4 g/t Au (3,754,000 ounces) in the indicated mineral resource category and 12,287,000 tonnes at 8.4 g/t Au (3,337,000 ounces) in the inferred mineral resource category. The Windfall Mineral Reserve, assuming 3.5 g/t operating, 2.5 g/t incremental, and 1.7 g/t development cut-off grade, comprises 12,183,000 tonnes at 8.06 g/t Au (3,159,000 ounces) in the probable mineral reserves category. The key assumptions, parameters, limitations and methods used in the Feasibility Study for Windfall, including the related Windfall Resource Estimate and Windfall Reserve Estimate, are described in a technical report (the “FS Technical Report”), which was prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The FS Technical Report is available on SEDAR (www.sedar.com) under Osisko’s issuer profile. The Windfall gold deposit is currently one of the highest-grade resource-stage gold projects in Canada and has world-class scale. Mineralization occurs in three principal areas: Lynx, Main, and Underdog. Mineralization is generally comprised of sub-vertical lenses following intrusive porphyry contacts plunging to the northeast. The resources are defined from surface to a depth of 1,600 metres, including the Triple 8 (TP8) zone. The reserves are defined from surface to a depth of 1,100 metres. The deposit remains open along strike and at depth. Mineralization has been identified at surface in some areas and as deep as 2,625 metres in others with significant potential to extend mineralization down-plunge and at depth.
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% interest in the high-grade Windfall 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 the Urban Barry area and nearby Quévillon area (over 2,300 square kilometres).
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, projections and interpretations as at the date of this news release. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always, using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “potential”, “feasibility”, “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 news release contains the forward-looking information pertaining to, among other things: the ; the amount and type of drilling to be completed and the timing to complete such drilling; the focus of the remaining infill drilling; the trend of grade increase; the proposed exploration and development works; the entering into and performance of the power line agreement, completion of the proposed environmental assessment, identification, negotiation and entering into of any strategic transaction to assist in the construction of the Windfall project, the Windfall gold deposit being one of the highest-grade resource-stage gold projects in Canada and having world-class scale; the key assumptions, parameters and methods used to estimate the mineral resource estimate disclosed in this news release; the prospects, if any, of the Windfall gold deposit; ; future drilling at the Windfall gold deposit. Such factors include, among others, the ability of Osisko to complete further exploration activities, including (infill) drilling; the ability to complete development activities described herein; risks relating to the ability of exploration activities (including drill results) to accurately predict mineralization; errors in management’s geological modelling; the ability of the Corporation to complete materials, file and to obtain required approvals; risks related to the negotiation and entering into of the power line agreement; the results of exploration activities; risks related to the identification, negotiation with, and execution of any strategic transaction to support the development of the Windfall gold deposit; 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 of securities of the Corporation 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.
CONTACT INFORMATION:
John Burzynski
Chief Executive Officer
Telephone (416) 363-8653
OSISKO MINING ANNOUNCES C$75 MILLION “BOUGHT DEAL” PRIVATE PLACEMENT OF UNITS
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
(Toronto, February 6, 2023) – Osisko Mining Inc. (TSX:OSK) (“Osisko” or the “Corporation”) is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a “bought deal” private placement basis, 24,195,000 units of the Corporation (each, a “Unit”) at a price of C$3.10 per Unit (the “Offering Price”) for gross proceeds of C$75,004,500 (the “Underwritten Offering”).
Each Unit will consist of one common share of the Corporation (each, a “Unit Share”) and one-half of one common share purchase warrant of the Corporation (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one common share of the Corporation for 18 months from the closing of the Offering at a price of C$4.00.
The Corporation has also granted the Underwriters an option to purchase up to an additional 8,065,000 Units at the Offering Price for additional gross proceeds of up to C$25,001,500 exercisable at any time up to 48 hours prior to the closing of the Offering (the “Underwriters’ Option”).
The net proceeds received from the Offering will be used to advance the Corporation’s Windfall Project, as well as for working capital and general corporate purposes.
It is anticipated that closing of the Offering will occur on or about February 28, 2023, or such other date or dates as the Corporation and the Underwriters may agree. The Offering is subject to the satisfaction of certain conditions, including receipt of all applicable regulatory approvals including the approval of the Toronto Stock Exchange. The securities sold under the Offering will have a hold period in Canada of four months and one day from the closing date in accordance with applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
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% interest in the high-grade Windfall 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 and nearby Quévillon area (over 2,400 square kilometres).
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, projections and interpretations as at the date of this news release. The information in this news release about the closing of the Offering; the use of proceeds of the Offering; the exercise of the Underwriters’ Option; the approval of the Toronto Stock Exchange relating to the Offering; 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, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “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 the Corporation at the time such assumptions and estimates were made, and 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 capital markets; the ability of exploration activities (including drill results) to accurately predict mineralization; errors in management’s geological modelling; the ability of Osisko to complete further exploration activities, including drilling; property interests in the Windfall Lake gold project; the ability of the Corporation to obtain required approvals and complete transactions on terms announced; 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 of securities of the Corporation 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.
For further information please contact:
John Burzynski
Chief Executive Officer
Telephone (416) 363-8653
OSISKO MINING FILES FEASIBILITY STUDY FOR WINDFALL
(Toronto, January 10, 2023) Osisko Mining Inc. (OSK:TSX, “Osisko” or the “Corporation”) is pleased to announce that it has filed the technical feasibility study report in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101“) on its 100% owned Windfall gold deposit. The technical report entitled “Feasibility Study for the Windfall Project, Eeyou Istchee James Bay, Québec, Canada” and dated January 10, 2023 (with an effective date of November 28, 2022) has been prepared for Osisko by BBA Inc. The technical report is available on SEDAR (www.sedar.com) under Osisko’s issuer profile.
Table 1 below (included in the Technical Report) replaces Table 4 from the November 28, 2022, news release. The technical report contains non-material changes from the November 28, 2022 news release. These changes do not impact the November 28, 2022, news release reference results; the modifications affect only numbers presented for reference purposes. Table 4 (sensitivity analysis) has been corrected, resulting in higher pre- and after tax NPV, higher pre- and after-tax IRR, and shorter pre- and after-tax payback at higher and lower gold prices.
Table 1: Gold Price(1) and Exchange Rate(2) Sensitivity
| Gold Price (US$/oz) | ||||||||
| 1,300 | 1,400 | 1,500 | 1,600(1) | 1,700 | 1,800 | 1,900 | 2,000 | |
| Pre-Tax NPV 5% (C$Million) | 836.2 | 1,119.2 | 1,402.1 | 1,685.1 | 1,968.0 | 2,251.0 | 2,534.0 | 2,816.9 |
| After-Tax NPV 5% (C$Million) | 640.4 | 821.1 | 996.1 | 1,168.4 | 1,338.7 | 1,504.8 | 1,670.2 | 1,835.4 |
| Pre-Tax IRR | 24.7% | 30.1% | 35.2% | 40.1% | 44.8% | 49.3% | 53.7% | 58.0% |
| After-Tax IRR | 21.5% | 25.9% | 30.0% | 33.8% | 37.5% | 41.0% | 44.4% | 47.6% |
| Pre-Tax Payback after start of production (Years) | 2.88 | 2.47 | 2.16 | 1.95 | 1.79 | 1.65 | 1.53 | 1.43 |
| After-Tax Payback after start of production (Years) | 3.03 | 2.59 | 2.26 | 2.03 | 1.86 | 1.72 | 1.61 | 1.52 |
| Foreign Exchange Sensitivity | ||||||||
| 0.90 | 0.85 | 0.80 | 0.77(2) | 0.70 | 0.65 | 0.60 | 0.55 | |
| Pre-Tax NPV 5% (C$Million) | 1,025.4 | 1,952.2 | 1,268.0 | 1,685.1 | 2,134.1 | 2,034.3 | 2,549.9 | 2,478.8 |
| After-Tax NPV 5% (C$Million) | 762.5 | 904.5 | 1,062.4 | 1,168.4 | 1,436.4 | 1,660.9 | 1,921.0 | 2,224.1 |
| Pre-Tax IRR | 28.3% | 32.6% | 37.1% | 40.1% | 47.5% | 53.5% | 60.3% | 68.0% |
| After-Tax IRR | 24.5% | 27.9% | 31.5% | 33.8% | 39.6% | 44.2% | 49.3% | 55.1% |
Notes:
(1) The base case uses a gold price of US$1,600/oz. (2) The base case uses an exchange rate of US$1.00=C$1.30 (or US$0.77 = C$1.00)
Osisko’s news release dated November 28, 2022 (entitled “Osisko Mining Delivers Positive Feasibility for Windfall”) summarized certain key results, assumptions and estimates contained in the Windfall feasibility study.
Qualified Person
The technical report entitled, “Feasibility Study for the Windfall Project, Eeyou Istchee James Bay, Québec, Canada” and dated January 10, 2023 with an effective date of November 28, 2022, was prepared for Osisko by BBA Inc. The scientific and technical content in this news release has been reviewed and approved by Mr. Mathieu Savard, P.Geo (OGQ #510), President of Osisko, who is a “qualified person” (within the meaning of NI 43-101).
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% interest in the high-grade Windfall 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 and nearby Quévillon area (over 2,400 square kilometres).
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, projections and interpretations as at the date of this news release. Any statement that involves predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always, using phrases such as “expects”, or “does not expect”, “is expected”, “interpreted”, “management’s view”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “potential”, “feasibility”, “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 news release contains the forward-looking information pertaining to, among other things: the Windfall gold deposit being one of the highest-grade resource-stage gold projects in Canada and having world-class scale; the feasibility study (or the “FS”) providing a robust base case assessment for developing Windfall as an underground dual ramp-access mine with a central processing mill at the mine site; the results of the engineering work being undertaken on the project; reliance on third-parties for infrastructure, including power lines; the timing and progress of the EIA study; the timing and progress of the mine permitting process; the results of the FS, including NPV, IRR, production, tax-free cash flows, capex, AISC, milling operations, average recovery, job creation; the key assumptions, parameters and methods used to estimate the mineral resource estimate relating to the FS; the prospects of Windfall being a highly-profitable gold mine; the ability of the Corporation to obtain project financing in H1 2023 (if at all); the basis for the Corporation making a production decision early in 2024 (if at all); the prospects, if any, of the Windfall gold deposit; timing and ability of Osisko to file a technical report for the FS disclosed in this news release; the trend of grade increase; the Lynx zone remaining open to expansion down plunge; upgrading a inferred mineral resource to a measured mineral resource or indicated mineral resource category; future drilling at the Windfall gold deposit; the significance of historic exploration activities and results. Such factors include, among others, risks relating to the ability of exploration activities (including drill results) to accurately predict mineralization; the timing and ability, if at all, to finalize the EIA study; the timing and ability, if at all, to obtain permits; the FS’ reliance on third-parties for infrastructure critical to build and operate the project, including power lines; our ability to obtain power for the project, if at all or on terms economic to the Corporation; the status of third-party approvals or consents; errors in management’s geological modelling; the ability of Osisko to complete further exploration activities, including (infill) drilling; property and royalty interests in the Windfall gold deposit; the ability of the Corporation to obtain required approvals; the results of exploration activities; risks relating to mining activities; the Canadian/United States dollar exchange rate; the global economic climate; metal (including gold) 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 of securities of the Corporation 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.
CONTACT INFORMATION:
John Burzynski
Chief Executive Officer
Telephone (416) 363-8653
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