Osisko to get C$12.25 million from units sale; International Sovereign Energy wraps C$2.65 million

By Devika Patel

Knoxville, Tenn., Sept. 19 - Canadian PIPEs took center stage Friday as Osisko Mining Corp. announced a C$12.25 million private placement of units to fund its aggressive exploration program and International Sovereign Energy Corp. concluded a C$2.65 million private placement of units, which had gone through several changes after pricing in August before finally settling Friday.

Osisko plans C$12.25 million

Osisko Mining, a gold exploration and production company based in Montreal, announced a $12.25 million private placement of units, which will be used to fund the company's planned exploration program in its Canadian Malartic gold deposit, located in the Abitibi region of Quebec.

"The funds will allow Osisko to continue its aggressive exploration program in the Malartic Camp to help augment the significant resources already identified on the Canadian Malartic Project, while we continue towards our goal of establishing Osisko as a mid-tier Canadian gold producer," Osisko's president and chief executive officer Sean Roosen said in a press release Friday.

"To date, our drill programs have covered less than 5% of our property holdings in the Malartic area," Roosen said of the property and planned exploration program in a Sept. 8 release. "We are highly encouraged by our progress at Canadian Malartic and we feel that Osisko shareholders can look forward to a very positive future as the company continues to explore and develop this exceptional property."

The company said earlier this month that it has estimated the property to contain a resource of 7.69 million ounces of gold.

In the private placement, the company will sell 2,916,725 flow-through common shares at C$4.20 apiece.

Settlement is expected Sept. 30.

Osisko's share price (Toronto: OSK) rose 8.14%, or 24 cents, after the announcement to close at C$3.19 Friday.

International Sovereign gets C$2.65 million

International Sovereign Energy announced the completion of a C$2.65 million private placement of units Friday, which was conducted via agent Canaccord Capital Corp. The deal had been amended from its original size of C$3.85 million.

"We are delighted to have received this vote of confidence from our investors, particularly in light of the current turmoil in the financial markets," the company's president and chief executive officer Eugene Hretzay said in a news release Friday.

Company shares (Toronto: ISR) decreased a slight 4.35%, or 5 cents, to close at C$1.10 Friday.

The deal priced for C$3.5 million on Aug. 27 with a C$350,000 greenshoe. It was decreased to C$2.65 million on Aug. 29.

The company sold 2.12 million units of one common share and one half-share warrant at C$1.25 apiece, decreased from its original plans to sell 2.8 million units.

Each whole two-year warrant is exercisable at C$1.50 in the first year and at C$2.00 thereafter.

If, over a 20 consecutive trading day period, the company's common shares close at a price which exceeds the warrant exercise price by 30% on a daily closing volume weighted average basis, the warrants will expire 30 days after the company notifies holder of such an event.

Proceeds will be used for advancement of the company's oil and gas properties and general corporate purposes.

International Sovereign is an oil and gas exploration company based in Vancouver, B.C.

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