Tags: Goldcorp | Osisko | Mining | Quebec

Goldcorp Offers $2.6 Billion for Rival Osisko Mining

Monday, 13 Jan 2014 08:12 AM

Goldcorp Inc. launched a bid to buy fellow gold miner Osisko Mining Corp. for C$2.6 billion ($2.4 billion) in cash and stock to gain access to Osisko's Malartic mine in Quebec.

The bid, which works out to C$5.95 per share, represents a 15 percent premium to Osisko's closing share price on Friday.

Goldcorp said on Monday that Osisko shareholders would receive 0.146 of a Goldcorp share plus C$2.26 in cash for each share they own. The bid will be open until Feb. 19.

Malartic, Osisko's only operating mine, is likely to produce 500,000 to 600,000 ounces of gold per year over its 16-year mine life, according to the company's website.

The mine in the Abitibi mining district started commercial production in May 2011.

Goldcorp has said it expects to produce between 3.0 million and 3.15 million ounces of gold this year, an increase of 13 to 18 percent from 2013.

A drop in prices and higher costs are weighing on gold miners' cash flow, but Goldcorp had said it was open to takeovers and may even consider big, capital-intensive gold-mining projects.

Goldcorp is the world's largest gold miner by market capitalization, surpassing Barrick Gold Corp., the world's biggest producer of the metal.

Goldcorp's shares closed at C$25.29 on Friday on the Toronto Stock Exchange.

© 2017 Thomson/Reuters. All rights reserved.

 
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Goldcorp Inc. launched a bid to buy fellow gold miner Osisko Mining Corp. for C$2.6 billion ($2.4 billion) in cash and stock to gain access to Osisko's Malartic mine in Quebec.
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2014-12-13
Monday, 13 Jan 2014 08:12 AM
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