Published on: 4/3/2014 10:03:29 AM Print | Font Sizes:  Normal Text Large Text

Osisko surprises Goldcorp


By: Northern Ontario Business staff

Osisko Mining is bulking up to fend off a hostile takeover bid by Goldcorp by teaming with Yamana Gold and two Canadian pension funds in a complex $3.4-billion arrangement to keep control of its mine and exploration properties.
Osisko Mining is bulking up to fend off a hostile takeover bid by Goldcorp by teaming with Yamana Gold and two Canadian pension funds in a complex $3.4-billion arrangement to keep control of its mine and exploration properties.

Osisko Mining is bulking up to fend off a hostile takeover bid by Goldcorp by teaming with Yamana Gold and two Canadian pension funds in a complex $3.4-billion arrangement to keep control of its mine and exploration properties.

Yamana is buying a 50 per cent stake in all of Osisko’s mining and exploration assets in a cash-and-share deal worth $1.37 billion.

The two companies become equal partners and Osisko keeps its Montreal head office. Osisko’s flagship Canadian Malartic Mine in Quebec and all its projects, including those in Kirkland Lake and Atikokan, will run by a joint operating committee.

The rest of the money is coming from the Canada Pension Plan Investment Board and La Caisse de dépôt et placement du Québec.

In an April 2 release, Osisko said its board of directors believe this deal is in the best interests of the company’s shareholders.

“We have worked carefully and diligently over the past two months to bring this deal to shareholders today,” said Osisko president and CEO Sean Roosen in a statement. “Osisko will continue to follow its ideals and principles…all the while striving to add value at the drill bit with new discoveries."

Toronto-based Yamana is a Canadian-based gold producer with mines and exploration assets in Brazil, Argentina, Chile and Mexico.

Osisko plans to hold a special shareholders meeting May 20.

The arrangement is expected to close by May 30.

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