Osisko has rejected the $2.6-billion hostile takeover bid made by Goldcorp on Jan. 13.
Calling the offer “financially inadequate and not in the best interests of Osisko,” the company said in a news release that the offer “significantly undervalues Osisko’s world-class Canadian Malartic Mine, and the rest of the company’s portfolio of high-potential projects in North America. The premium offered by Goldcorp, as well as the transaction multiples implied by the offer, are both significantly below the relevant precedents,” the company said.
Among a laundry list of reasons given for rejecting the offer, Osisko said the Goldcorp offer is opportunistic because the company’s mine is poised to enter its most productive years.
Osisko’s Northern Ontario properties include Hammond Reef, located 23 km north of Atikokan. More than 330,000 metres of drilling have been done on the property, and there are 1.75 million ounces of global inferred resource.
Its Kirkland Lake property includes 240 square kilometres of land, including more than 30 contiguous properties. The primary focus is in Gauthier Township where the company had been advancing five of its 100 per cent owned gold properties (Upper Beaver, McBean- Anoki, Bidgood and Upper Canada) towards production. The company had been working towards outlining a mineral resource of 8 million ounces of gold to feed a central milling facility to be constructed on the Upper Canada site.
Osisko additionally operates the Malartic gold mine in Quebec and has exploration interests in Mexico.