MONTREAL, Nov. 9 /CNW Telbec/ - The Société générale de financement du Québec (SGF) is pleased to announce a debenture-based $75 million investment in Osisko Mining Corporation. This investment will lead to the development of the Canadian Marlartic gold mining project, whose required investments total approximately $1 billion. This financing agreement is structured as a senior non-guaranteed debenture, convertible at the discretion of the SGF into Osisko shares at a price of $9.18 per share, and carries a 7.5% interest rate.
The Osisko Mining Corporation is currently developing the Canadian Malartic gold deposit and adjacent mineralized zones into a large-scale, open pit, bulk-tonnage mining operation. The corporation has already completed its primary and secondary prospecting phases, and has launched the construction phase now that it has the required certificates and government authorizations to proceed. Osisko plans to produce roughly 600,000 ounces of gold and 700,000 ounces of silver yearly over approximately 10 years.
SGF believes that this large-scale project highlights Québec's rich mining potential and guarantees significant economic benefits for Malartic, located in the heart of the province's Abitibi gold belt. "Activities linked to the site's construction and preparation will generate several thousand direct and indirect jobs within the Abitibi-Témiscamingue region, and will contribute positively to economic development of both the surrounding areas and Québec," says Pierre Shedleur, President and General Manager of SGF.
Société générale de financement du Québec (www.sgfqc.com), an industrial and financial holding company, has a mission to carry out economic development projects, particularly in the industrial sector, in cooperation with partners and in compliance with accepted profitability requirements and with the economic development policy of the Québec government. As part of its new mandate, SGF is authorized by the Québec government to go beyond its traditional role as an equity investor by offering complementary solutions, such as loans, debentures or preferred capital-share investments.
SOURCE SOCIETE GENERALE DE FINANCEMENT DU QUEBEC
For further information: For further information: Sophie Alarie, Senior Advisor, Communications and Media Relations, (514) 876-9368