Published on: 4/17/2014 3:05:19 PM Print | Font Sizes:  Normal Text Large Text

Osisko staves off Goldcorp takeover

By: Northern Ontario Business staff

Montreal’s Osisko Mining announced April 16 that it has reached an agreement with Yamana Gold and Agnico Eagle to jointly buy all Osisko's issued and outstanding common shares for $3.9-billion or $8.15 a share.

Under the terms of the agreement, Yamana and Agnico Eagle would form a 50-50 joint-venture to operate Osisko’s Canadian Malartic Mine in Quebec and explore and develop its Ontario properties in Kirkland Lake, Atikokan Hammond Reef, Pandora/Wood and Pandora.

The announcement came after Goldcorp announced it was making another attempt at its $3.6-billion hostile takeover of Osisko, this time through a proxy fight.

Goldcorp has nominated its own field of candidates for the board of directors and a new CEO to be table at Osisko’s upcoming annual meeting, May 20.

Osisko said its board has approved this friendly takeover agreement, and recommended that Osisko shareholders support the transaction.

“I believe we have delivered shareholders the superior value option to the hostile attempt to acquire our company,” said Osisko president-CEO Sean Roosen in a statement. “The New Osisko will be a company with regular and strong cash flow, strong future potential for increasing cash flow, and tremendous upside exploration potential.”

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