TORONTO (miningweekly.com) – Montreal-based Osisko Mining has received construction approval for its flagship Malartic gold project, in Quebec, from the province's government, the firm announced on Thursday.

The Conseil des ministres du Quebec has approved the order in council authorising the completion of the almost-$1-billion project, which is expected to be one of Canada's biggest gold mines.

“Construction work on the mine and the mill will begin shortly, immediately upon issuance of the required formal authorisation certificates,” Osisko said.

The construction work is expected to take 18 months, and the openpit mine and mill should be fully operational by the second quarter of 2011.

The project, which is located next to Highway 117 in the town of Malartic, will create about 800 direct jobs during the development phase and 465 permanent jobs will be created during the 10-year mine life.

The company will relocate part of the town, including about 200 houses, to make way for the mine.

Last week, Osisko announced it would raise around C$130-million for the Malartic project, in a bought deal financing.

The company is also seen as a potential takeover target, especially after Canada's second-biggest gold-miner, Goldcorp, announced on August 10 it had increased its holding in the junior to around 13%.

In February this year, Osisko raised C$403-million in a bought-deal offering, making it one of the first junior miners to raise equity finance after markets froze up in the fourth quarter of 2008.

The company also raised C$10,64-million for exploration in a flow-through financing in June, and another C$75-million by offering a convertible debenture last month.

Osisko shares rose 3,7% on Thursday, to C$7,30 apiece by 15:20 in Toronto.

The company has a market capitalisation of C$1,9-billion.

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