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Osisko Mining announces JV for Windfall, funding

Kitco News

Osisko Mining (TSX:OSK) said today it signed an agreement for a private placement of $154 million in a convertible senior unsecured debenture with Northern Star Resources for Osisko's Windfall Project.

Osisko Mining was up 6.48% to $3.12 a share.

According to a preliminary economic assessment, Windfall has a C$544 Million construction cost. The internal rate of return is 39.4%. The net present value after taxes is C$1.534 billion.

Chair and CEO of Osisko Mining, John Burzynski, welcomed Osisko's new joint venture partner.

"We are pleased to announce today's investment agreement and Northern Star's intention to negotiate an earn-in joint-venture partnership on our Windfall Project. The potential of joining forces with Northern Star, a well-respected gold producer with a depth of experience in mining underground high-grade deposits similar to the Windfall Project, would help de-risk the remaining work ahead to bring the Windfall Project to successful production," said Burzynski.

"We are confident that, subject to reaching an agreement with Northern Star on the earn-in joint-venture terms, they will be a very strong partner in assuring our development plans for the Windfall Project. Going forward, Osisko shareholders can be confident that there should be no significant shareholder dilution needed to successfully bring the Windfall Project to production."

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