Osisko pushes out drawdown date for tranche of C$150 million financing

By Angela McDaniels

Tacoma, Wash., March 31 - Osisko Mining Corp. amended its C$150 million financing agreement with CPPIB Credit Investments Inc. by extending the drawdown date for the C$75 million second tranche to Dec. 31, 2010 from March 31, according to a company news release.

The financing agreement was entered into in September and carries a 7.5% interest rate. The C$75 million first tranche was drawn Nov. 25.

Under the terms of the original agreement, if Osisko draws the second tranche, it will issue 5.5 million five-year warrants to CPPIB. The exercise price will be a 30% premium to the 15-day volume-weighted average price of its common stock prior to drawdown.

CPPIB received 7 million warrants in September. They are exercisable at C$10.75 per share until Sept. 24, 2014.

There are no standby costs for the facility.

As part of the consideration for the extension, Osisko agreed not to make any voluntary prepayments on the facility prior to October 2012.

The proceeds from the first tranche were used for the development of the Canadian Malartic project, and proceeds from the second tranche will be used for general corporate purposes.

Montreal-based Osisko is developing the Canadian Malartic gold deposit.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.