/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES/
Trading Symbol: TSX:
OSK
TORONTO, Jan. 15, 2021 /CNW/ - 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") in connection with a
"bought deal" private placement financing (the "Offering")
of an aggregate of 11,215,000 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) and section 359.1 of the Taxation
Act (Québec)) (the "Flow-Through Shares").
The Flow-Through Shares will be issued at a price of
C$5.35 (the "Issue Price") for
aggregate gross proceeds of C$60,000,250. In addition, the Corporation will
grant the Underwriters an option (the "Underwriter's
Option") to sell an additional 1,870,000 Flow-Through Shares,
at the Issue Price for additional gross proceeds of C$10,004,500, exercisable 48 hours prior to
closing.
The gross proceeds from the issue and sale of the Flow-Through
Shares will be used by the Corporation to incur eligible "Canadian
exploration expenses" that will qualify as "flow-through mining
expenditures" as such terms are defined in the Income Tax
Act (Canada) (the
"Qualifying Expenditures") related to the Corporation's
projects in Québec on or before December 31,
2022. All Qualifying Expenditures will be renounced in
favour of the subscribers of the Flow-Through Shares effective
December 31, 2021.
The Offering is expected to close on or about February 12, 2021 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
Flow-Through Shares to be issued under the Offering will be subject
to a hold period in Canada
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.
The Windfall gold deposit is located between Val-d'Or and Chibougamau in Eeyou Istchee James Bay,
Québec, Canada. The mineral
resource defined by Osisko, as disclosed in the news release dated
February 19, 2020 and supported by
the technical report entitled "An updated mineral resource estimate
for the Windfall Lake Project, Located in the Abitibi Greenstone
Belt, Urban Township, Eeyou Istchee James Bay, Québec, Canada" and dated April
3, 2020 (with an effective date of January 3, 2020), and assuming a cut-off grade of
3.5 g/t, comprises 4,127,000 tonnes at 9.1 g/t Au (1,206,000
ounces) in the indicated mineral resource category and 14,532,000
tonnes at 8.40 g/t Au (3,938,000 ounces) in the inferred mineral
resource category. The key assumptions, parameters and methods used
to estimate the mineral resource estimate disclosed in the
February 19, 2020 news release are
further described in the full technical report prepared by Micon
International Limited ("Micon") and BBA Inc ("BBA"), in accordance
with NI 43-101 available on SEDAR (www.sedar.com) under the
Corporation'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 zones: Lynx, Main Zone,
and Underdog. Mineralization is generally comprised of deformed
sub-vertical zones plunging to the northeast. Vein-type or pyrite
replacement-type styles of mineralization crosscut syn-volcanic
host rocks and syn-deformation felsic porphyry intrusions and are
spatially associated with the contacts of the intrusions. The
deposit is well defined from surface to a depth of 1,200 metres and
remains open along strike and at depth. Mineralization has been
identified 30 metres from surface in some areas and as deep as
2,000 metres in others, with significant potential to extend
mineralization down-plunge and at depth.
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 proceeds from
the Offering; the jurisdictions in which the Flow-Through Shares
will be offered or sold; the number of Flow-Through Shares offered
or sold; the size of 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
tax treatment of the securities issued under the Offering under the
Income Tax Act (Canada) and
Taxation Act (Québec); the timing to renounce all Qualifying
Expenditures in favour of the subscribers, if at all; 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; the
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;
changes in the tax and regulatory regime; 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.