Osisko is buying Queenston Mining in the Kirkland Lake area for an all-stock deal worth $550 million.
Queenston has 230-square kilometres of exploration land including its flagship Upper Beaver project.
Osisko’s has its flagship Malartic gold mine in northwestern Quebec.
Following the closure of the adeal, Queenston shareholders will own approximately 12 per cent of Osisko.
“Osisko is very pleased to announce this transaction with Queenston,” said Sean Roosen, president and CEO Osisko in a press release. “Queenston is an excellent strategic fit within our existing Canadian portfolio and in our view, is one of the best undeveloped high-grade opportunities and significant open pit targets in Canada. Osisko has always sought to be a part of camps rather than isolated assets and this transaction provides us with a highly strategic land package in another prolific Canadian gold camp.”
Charles Page, president and CEO Queenston, said “We are delighted to be combining forces with the world class team from Osisko. We feel that we are offering the shareholders of Queenston the opportunity to maximize value through our combined efforts. We look forward to integrating our team with the Osisko team to create a new leading Canadian mid-tier mining company. I am very proud of our success and the exceptional value that it has created for our shareholders.”
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