On November 11, 2009, Orex entered into an Option and Joint Venture Agreement whereby Osisko Mining Corporation (TSX: OSK) has a working right and an exclusive option to acquire up to a 60% undivided interest in Orex’s Goldboro property and surrounding claims in Nova Scotia (collectively, the Property), by incurring exploration and development work expenditures and by making a private placement in the Company.

 

Upon signature of the Formal Agreement, Osisko completed a private placement in the capital stock of Orex of 13,000,000 Units at a price of $0.10 per Unit, for gross proceeds of $1,300,000. Each Unit consists of one common share and one transferable common share purchase warrant. Each transferable common share purchase warrant entitles its holder to acquire one common share for $0.125 for a period of three years.

 

In order to acquire a 50% undivided interest in the Property on or before September 29, 2013 (the Initial Option), Osisko shall incur exploration and development expenditures for a total of $8,000,000 according to the following timetable:

 

 

Osisko may, at its sole discretion, accelerate and apply exploration and development expenditures to future years’ expenditures and, accordingly, the Initial Option may be exercised sooner.

 

Osisko shall solely fund a prefeasibility study to earn an aggregate 60% interest (that is, an additional 10% interest) in the Property on or before September 29, 2015 (the Additional Option).