MONTREAL, QUEBEC--(Marketwire - Nov. 26, 2012) -Osisko Mining Corporation ("Osisko") (TSX:OSK)(FRANKFURT:EWX) is pleased to announce it has entered into an agreement to acquire 7,795,574 common shares (9.2%) of Queenston Mining Inc.("Queenston") (TSX:QMI)(OTCQX:QNMNF) from Agnico-Eagle Mines Limited ("Agnico-Eagle") (NYSE:AEM)(TSX:AEM) and that Agnico-Eagle, as the shareholder of record for such shares, has agreed to vote in favour of the previously announced Arrangement (as defined below, see Osisko press release, November 12, 2012).
Pursuant to the agreement, Agnico-Eagle will receive$5.43 for each Queenston common share (closing price on the Toronto Stock Exchange on November 23, 2012) sold, for total proceeds of approximately $42.3 million. Osisko's acquisition of the 9.2% stake in Queenston will be completed using available cash on hand.
UPDATE ON FRIENDLY ACQUISITION OF QUEENSTON
Osisko's acquisition of Queenston will be completed by way of a court-approved plan of arrangement, whereby Osisko will acquire each issued and outstanding share of Queenston in exchange for 0.611 of a common share of Osisko (the "Arrangement"). The detailed terms and conditions will be disclosed in the Queenston management information circular which will be filed and mailed to Queenston shareholders this week, with the special meeting to be held on December 20, 2012. Completion of the transaction is subject to customary conditions and the receipt of all necessary regulatory and stock exchange approvals.
Osisko is pleased to report that it has received lock-up agreements representing over 37% of the issued and outstanding common shares of Queenston (prior to and not including today's agreement with Agnico-Eagle).