November 12, 2012 – Republic of Mining

NEWS RELEASE: OSISKO ANNOUNCES FRIENDLY ACQUISITION OF QUEENSTON

November 13, 2012November 12, 2012

November 12, 2012

MONTREAL, QC and TORONTO, ON – November 12, 2012. Osisko Mining Corporation (“Osisko”) (TSX:OSK) (FRANKFURT:EWX) and Queenston Mining Inc. (“Queenston”) (TSX:QMI) (OTCQX:QNMNF) are pleased to announce that they have entered into a definitive agreement (the “Agreement”) pursuant to which Osisko will acquire, by way of a court-approved plan of arrangement, all of the issued and outstanding common shares of Queenston. Queenston is a Canadian mineral exploration and development company with a primary focus on its holdings in the historic Kirkland Lake gold camp comprising 230km2 of prime exploration lands on trend with Osisko’s flagship Canadian Malartic mine.

Pursuant to the terms of the Agreement, Queenston shareholders will receive 0.611 of an Osisko share for each common share of Queenston held, implying an offer of C$6.00 per share based on Osisko’s closing price on the Toronto Stock Exchange (“TSX”) on November 9, 2012. The offer represents a 45% premium to Queenston’s 30-day volume-weighted average price (“VWAP”) for the period ending November 9, 2012.

The transaction values Queenston’s equity at approximately C$550 million on a fully diluted in-the-money basis and implies an enterprise value of approximately C$400 million. Pro forma the transaction, Queenston shareholders will own approximately 12% of Osisko (based on fully diluted in-the-money shares outstanding).

Canada’s future is bright, to lead G7 in growth in next 50 years: OECD – by Julian Beltrame (Winnipeg Free Press – November 9, 2012)

November 12, 2012

http://www.winnipegfreepress.com/

“For Canada, it’s a fairly young population, fairly well-educated workforce
and you have all these natural resources that give you higher growth than
other countries,” said Matthias Rumpf, a spokesman with the organization.

The Canadian Press – OTTAWA – The 21st century may not exactly belong to Canada, but according to a major world economic body the country is going to do pretty well. In fact, the Paris-based Organization for Economic Co-operation and Development sees Canada among the world’s leading economic lights over the next 50 years.

In issuing its long-term view of how it expects world economies to unfold, the OECD says Canada will continue to lead the Group of Seven industrialized economies in average annual growth over the next half century.

And it will also be near the top on a per-capita basis — possibly a truer measure of success — with only Japan sneaking ahead.

The economic research organization, which represents most of the world’s biggest industrialized economies, predicts Canada’s real gross domestic product will average 2.2 per cent growth in the next half century.

Complex Voting Puts Glencore-Xstrata Merger at Risk – by Dana Cimilluca (Wall Street Journal – November 12, 2012)

November 12, 2012

http://online.wsj.com/home-page

LONDON—Xstrata PLC’s effort to seal a merger with Glencore International PLC has run into several unexpected obstacles since it was unveiled nine months ago. Now another hurdle is looming that could prove fatal.

Shareholders next week will vote on the merger using an untested ballot system devised to sidestep investor opposition to retention payments that Xstrata has proposed.

As next Tuesday’s vote approaches, people on both sides of the deal have expressed confidence that the merger will be approved. But behind the scenes, they are fretting that the complex voting procedure contains land mines that could blow up the deal even though most shareholders seem to be in favor of it.

The proposed merger would create a natural-resource company with a market value currently measured at $68 billion. It has traveled a rocky path since it was first proposed in February. Glencore originally proposed to pay 2.8 of its shares for each Xstrata share in a deal that would have awarded several senior Xstrata executives, including Chief Executive Mick Davis, millions of dollars for staying with the combined company for three years. That proposal called for Xstrata shareholders separately to approve the price and the retention payments.

First Nations hold veto over resource development – by Barbara Yaffe (Vancouver Sun – November 12, 2012)

November 12, 2012

http://www.vancouversun.com/index.html

Governments and corporate Canada remain in denial about a new reality: aboriginal groups hold veto power over resource development.

In his just-published book, Resource Rulers; Fortune and Folly on Canada’s Road to Resources, Bill Gallagher reviews the legal victories natives have toted up since the 1980s, and draws an intriguing conclusion.

He says it’s no longer enough for companies to merely consult on resource projects, they need to invite aboriginals to become partners and co-managers in proposed developments.

Gallagher, a Kitchener resident who has worked as an oil-patch lawyer and treaty negotiator, calls the situation “the biggest under-reported business story of the last decade.” He personally has counted up “well over” 150 legal wins for native groups, all based on provisions outlined in Canada’s Constitution.

“The native legal winning streak now simply has to be fundamentally and constructively addressed, both nationally and regionally .”

That message was reinforced last week by Assembly of First Nations chief Shawn Atleo, speaking at a gathering north of Thunder Bay. Atleo said aboriginals are prepared to take care of themselves financially, using revenue from resources they believe they own.

Troubled Pascua Lama gold project experiences yet another setback – by Dorothy Kosich (November 12, 2012)

November 12, 2012

http://www.mineweb.com/

Chile’s mine health and safety regulator has requested a number of studies be presented for its consideration before it will allow the resumption of pre-stripping activities at Barrick’s Pascua Lama.

RENO (MINEWEB) – The costs and delays at the troubled Pascua Lama project–which already contributed to the dismissal of former Barrick CEO Aaron Regent–continue to mount as Chilean authorities halted construction work at portions of the project due to concerns about the health of workers at the site.

However, in a statement issued Sunday, Barrick said the order “only affects activities related to pre-stripping in Chile.” “Major construction activities on the Chilean side of the project, including work on the ore tunnel, the crusher and the camp will continue uninterrupted,” Barrick said in a news release. “Construction activities in Argentina are not impacted.”

“At this time, pre-stripping is not a critical path item in the construction schedule and a temporary halt is not anticipated to impact the overall project schedule or cost estimates,” the company said.

The Chilean newspaper La Tercera reported that safety inspectors from Chile’s National Geology and Mining Service (Sernageomin) visited Pascua Lama on October 24 and found there was an excess of fine particulates in suspension in the air.