Osisko Mining Corp. secured access to $150-million, money that will help it move a small Quebec town to get at the shiny gold underneath.
The miner signed a deal with CPPIB Credit Investments for two $75-million loans - one earmarked to finance the Quebec project and the other targeted toward general corporate use. Landing the cash also means the company has access to a $75-million debt facility from Societe generale de financement du Quebec.
RBC Capital Markets said in a note that the CPPIB money may just be a safety outlet - "a conservative move by management to secure full project financing to build the Malartic gold mine."
Work on the Malartic mine began in August. The $930-million mine faces daunting challenges - 200 houses need to be moved, as well as a daycare, church and school.
Meanwhile, rumours have been swirling for months that the company would be taken over, with Goldcorp featuring prominently as it accumulates a stake. In two purchases, one in mid-August and the second on Sept. 1, Goldcorp dropped $3.4-million to buy another 492,300 shares in Osisko, according to regulatory filings.
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