Offering Increased-All cashed up!Osisko Mining increases offering to $350.35-million
2009-02-04 09:44 ET - News Release
Mr. John Burzynski reports
OSISKO MINING CORPORATION INCREASES BOUGHT DEAL OFFERING TO C$350,350,000
In connection with its previously announced public offering, Osisko Mining Corp. and the syndicate led by Thomas Weisel Partners Canada Inc. and BMO Capital Markets have agreed to increase the size of the offering. Under the revised terms, the underwriters have agreed to buy 77 million units from Osisko on a bought deal basis and sell them to the public at a price of $4.55 per unit. Each unit will consist of one common share and one-half common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of the company at a price of $5.45 until Nov. 17, 2009.
The company has also granted to the underwriters an overallotment option to purchase an additional 11.55 million units at the same price, exercisable in whole or in part, for a period of 30 days on or following the closing date.
The gross proceeds raised from the offering will be $350.35-million ($402,902,500 if the overallotment option is exercised). The offering is subject to the approval of the Toronto Stock Exchange. The units will be offered in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec by short form prospectus, and in such other jurisdictions, including the United States and in those jurisdictions outside of Canada which are agreed to by the company and the underwriters, where the units can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements. The offering is expected to close on or about Feb. 25, 2009.
Osisko intends to use the net proceeds of the offering to finance the development of the Malartic project and for general corporate purposes. With the bigger offering, the company expects this adequately fulfills the equity requirements for the Malartic project.