The anticipation of a future gold mine in northwestern Ontario has resulted in a friendly take-over bid between two Vancouver gold miners.
Osisko Mining Corporation made a $372 million all-stock bid for Brett Resources and its advanced Hammond Reef project near Atikokan.
In a March 22 news release, Sean Roosen, Osisko President and CEO, said the acquisition creating Canada's newest mid-tier gold producer will compliment pending production at their Canadian Malartic gold deposit near Val d'Or, Quebec, scheduled to go into production in mid-2011.
"The addition of potential future production from the Hammond Reef project to Canadian Malartic could well see us become a million-ounce-per year producer within five years."
He expects the Hammond Reef project to move toward a feasibility study "in short order." Cash generated from the Quebec mine next year will allow them to fund Hammond Reef without having to go to the market.
"This is a very good deal for the shareholders of Brett and Osisko, and one that creates true value for both."
Brett's board of directors are recommended their shareholders accept the offer.
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