Osisko Mining Can Move AheadSeptember 25, 2009
Osisko Mining Corp. secured access to C$150million, money that will help it move a small Quebec town to get at the shiny gold underneath.
The miner signed a deal with CPPIB Credit Investments for two C$75 million loans – one earmarked to finance the Quebec project and the other targeted toward general corporate use. Landing the cash also means the company has access to a $75-million debt facility from Societe generale de financement du Quebec.
RBC Capital Markets said in a note that the CPPIB money may just be a safety outlet – “a conservative move by management to secure full project financing to build the Malartic gold mine.”
Meanwhile, rumours have been swirling for months that the company would be taken over, with Goldcorp (GG) featuring prominently as it accumulates a stake. In two purchases, one in mid-August and the second on Sept. 1, Goldcorp dropped C$3.4 million to buy another 492,300 shares in Osisko, according to regulatory filings.