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Osisko Mining Corp (OBNNF) RSS Feed

Followers
4
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14
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Posts (Total)
34
Created
09/28/10
Type
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Ticker: TSX:OSK or PINK:OSKFF Sisko Mines Luring Takeover Target Dow Jones Newswire 3:32P EST 9/28/10: 3:32 (Dow Jones) Having fully financed, sizeable gold mining project that is nearing the start of production, makes Osisko Mining (OSK.T) a “potential takeover target,” GMP says, suggesting a reasonable takeover price could be C$15-C$20/share. An obvious potential bidder could be Goldcorp (GG) since it already a 10.2% OSK.T stake. Osisko spokesman said the company believes it has a “unique asset in the gold space,” and is interested in realizing full value for shareholders. Osisko’s been rumored to be a takeover candidate in the past, and would expect those rumors to continue in the future, spokesman added. GG spokeswoman declined comment. In Toronto, OSK.T recently up 4.7% at C$14.38 Share Structure Shares Structure as of August 6, 2010 Outstanding shares: 370.1 M Options: 14.9 M Warrants: 7.0 M Convertible Debentures : 0.8 M Fully diluted: 392.8 M Market Cap: $ 5.07 B 12-Month Trading Range: $ 6.78 - $ 13.88 Recent Drill Results Osisko and Clifton Star Intersect 42 Metres Averaging 3.78 g/t Au at Duparquet http://finance.yahoo.com/news/Osisko-and-Clifton-Star-ccn-3386754220.html?x=0&.v=1 BACKGROUND: From Osisko's website: http://www.osisko.com/en/company/index.html Osisko Mining Corporation is a development stage gold mining company based in Montreal, Quebec, Canada. Osisko is currently building the Canadian Malartic gold mine in the Abitibi mining district after receiving the final authorizations from the Québec Government on August 19, 2009. The commercial production is scheduled for the second quarter 2011. The Company's NI 43-101 compliant feasibility study published in November 2008 and the updated reserve estimate published in February 2010 outline an open pit operation that will produce an average of over 600,000 ounces of gold annually over a 12.2-year mine life (55,000 tpd milling rate), including operating costs of US$319 per ounce, ranking it in the lowest cost quartile among global gold producers. Canadian Malartic currently represents the biggest gold reserve close to production in Canada, and is still growing through ongoing drilling on adjacent mineralized zones. Current reserves for the Canadian Malartic property are 8.97 million ounces1, plus an indicated resource of 2.2 million ounces2 and an inferred resource of 0.5 million ounces3. A drilling program is underway in 2010 on several mineralized zones and high potential exploration targets on the property. Osisko signed option agreements on several gold projects in Quebec, Ontario and Nova Scotia: Malartic CHL (Golden Valley Mines) Duparquet, (Clifton Star Resources), Dunn (Midland Exploration), Mountjoy (Claim Post Resources) and Goldboro (Orex Exploration). During the two first quarters 2010, over 174,000 meters were drilled including 81,000 meters on Canadian Malartic and Malartic CHL, 13,000 meters on Goldboro and 78,000 meters on Duparquet (120,000 metres planned for 2010). During 2009, Osisko completed over C$1 billion in financings. At the end of June 2010, Osisko had over CDN$581 million in cash, including all funding necessary to complete construction of the Canadian Malartic mine and its current exploration commitments, making the company one of the best-financed developers in the gold sector. On August 13, 2010, the Company completed its acquisition of Brett Resources Inc. (TSX-V: BBR) which then became a wholly-owned subsidiary of Osisko, following a friendly takeover offer announced on March 22, 2010. Brett's main asset is the Hammond Reef advanced gold project located near Thunder Bay, Ontario that currently hosts a NI 43-101 compliant inferred resource of 6.70 million ounces of gold (259.4 million tonnes at a grade of 0.8 grams per tonne, using 0.3 grams per tonne cut-off), of which 97% lies within 300 metres of surface. The acquisition of the Hammond Reef deposit enhances Osisko’s reserve and resource base and provides the potential to see Osisko become a one million ounce per year gold producer by 2015-2016. Osisko and its team have won a number of prestigious awards, including the AEMQ "Prospector of the Year" Award in 2006, the PDAC "Prospector of the Year" Award in 2007, the AEMQ "e3" Award in 2008, the AEMQ "Entrepreneur of the Year" Award in 2009 and the CIM Syncrude Award for Excellence in Sustainable Development in 2010 . The senior management team members were also recognized as "Mining Men of the Year" for 2009 by the Northern Miner. Osisko is included on the S&P/TSX Composite Index (including the S&P/TSX Global Gold Index and the S&P Global Mining Index), the leading indicator of market performance based on Canada's major corporations.
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