MONTREAL, QUEBEC--(Marketwire - Aug. 10, 2009) - Osisko Mining Corporation (the "Company") (TSX:OSK) (FRANKFURT:EWX) is pleased to report its second quarter financial results for the period ended June 30, 2009.
During the second quarter of 2009, the Company incurred a loss of $5.8 million ($0.02 per share) compared to a loss of $1.0 million ($0.01 per share) in the corresponding period of 2008. For the first six months of 2009, the Company has incurred a loss of $6.6 million ($0.03 per share) compared to a net income of $3.7 million ($0.02 per share) generated in the first semester of 2008.
Higher costs were incurred both in the quarter and the semester as a result of an increase in activities as the Company moves from an exploration company towards an intermediate gold development and operating company. The 2008 first semester results included an income tax recovery of $4.5 million following renunciation of the tax attributes to the subscribers of the $25 million flow-through financing of July 2007. The recovery in 2009 was lower at $2.0 million as a result of a lower flow-through financing of $12.25 million in 2008.
During the second quarter, the Company continued to aggressively pursue the development of the Canadian Malartic Project (the "Project"), including:
- Completion of the public hearings process held by Quebec's Bureau d'audiences publiques sur l'environnement ("BAPE"). The BAPE's report was issued on July 9, 2009, and concluded that the project could be developed in accordance with Quebec's sustainability criteria and subject to the implementation of a few recommendations.
- Advancement on detailed engineering which is now estimated to be 60% complete.
- Continued evaluation of bids for contractors, services and procurement. Contract awards are progressing in accordance with schedule.
- Continued progress on the relocation program with the relocation of some 75 residences to the new sector, the launch of construction of three institutions, as well as advancement to near completion of the new elementary school, the day care facility, and the adult training centre.
- Continued efforts to secure the necessary financing for the development of the Project. The Company entered into a financing agreement with the Societe generale de financement du Quebec ("SGF") for a $75 million, 7.5%, 5 year non-callable convertible debenture. The SGF agreement is subject to a number of conditions which should be completed within the next 45 days.
The Company is in discussion with several other institutions and strategic investors to complete the financing requirements.
The Company also released the measured and indicated resource estimate on the Barnat deposit which is estimated to contain some 1.94 million ounces of gold. To pursue its exploration efforts, the Company concluded a $10.4 million flow-through financing on June 26, 2009.
Mr. Sean Roosen, President and CEO, commented: "We are continuing to build shareholder's value by achieving the various milestones in the development of the Canadian Malartic Project, and by further enhancing the economics of the Project through the discovery of additional ounces within the Project area. We look forward to receive the necessary permits from the Quebec Government to allow our team to move to the construction phase."
Highlights from the Company's financial position are as follows (in millions of dollars):
------------------------------------------------------------------------- June 30, December 31, 2009 2008 ------------------------------------------------------------------------- Cash Position(1) 399.4 95.7 Working Capital 369.6 92.7 Total Assets 740.2 318.2 Shareholders' Equity 665.5 267.3 ------------------------------------------------------------------------- (1) Includes Cash and cash equivalents, Short-term investments, Restricted cash and Cash collateral investments.
The financial statements and Management Discussion and Analysis for the period ended June 30, 2009, will be filed on SEDAR by August 14, 2009.
Osisko Mining Corporation is currently developing the Canadian Malartic gold deposit and evaluating adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Company is well-funded with approximately $400 million on hand.
Forward Looking Statements
Certain statements contained in this Press Release, may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation that all technical, economical and financial conditions will be met in order to put the Canadian Malartic Project into commercial production, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include gold prices, access to skilled mining development and mill production personnel, results of exploration and development activities, the Corporation's limited experience with production and development stage mining operations, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations market prices, continued availability of capital and financing and general economic, market or business conditions. These factors are discussed in greater detail in the Corporation's most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. The Corporation cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Corporation's forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct
FOR FURTHER INFORMATION PLEASE CONTACT:
Osisko Mining Corporation
Vice-President Corporate Development
Osisko Mining Corporation
Toll Free: 1-888-674-7563