August 12, 2009 / 9:49 PM / 9 years ago

UPDATE 1-Osisko to raise C$130 mln in bought deal

* Proceeds to fund development of Malartic project

* Says underwriters to sell 18.6 mln shares at C$7 apiece

Aug 12 (Reuters) - Osisko Mining Corp (OSK.TO) said it would raise about C$130 million ($119.6 million) in a bought-deal financing, partly to fund the development of its Malartic project in Quebec.

The company said it agreed to sell 18.6 million common shares to a syndicate of underwriters led by Thomas Weisel Partners Canada Inc and BMO Capital Markets, who will sell the shares to the public at C$7.00 apiece.

The underwriters will have an over-allotment option to buy an additional 2.8 million shares.

The net proceeds of the offering, which is expected to close on or about Sept. 1, will also be used for general corporate purposes.

In July, Osisko closed an agreement in principle with the Societe generale de financement du Quebec (SGF) for financing of C$75 million for development of its Malartic project.

Shares of the Montreal, Quebec-based company closed at C$7.39 Wednesday on the Toronto Stock Exchange.

$1=1.087 Canadian Dollar Reporting by Koustav Samanta in Bangalore; Editing by Anne Pallivathuckal

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