DAILY NEWS Nov 12, 2012 3:59 PM - 0 comments

ACQUISITION: Osisko makes friendly $550M offer for Queenston

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2012-11-12

MONTREAL – Osisko Mining Corp. has made a friendly offer to acquire all of the issued and outstanding common shares of Queenston Mining of Toronto. Osisko is offering 0.611 of an Osisko share for each Queenston common share. The offer represents a 45% premium to Queenston's 30-day volume weighted average price.

The transaction values Queenston's equity at approximately $550 million on a fully diluted in-the-money basis and implies an enterprise value of approximately $400 million. Pro forma the transaction, Queenston shareholders will own approximately 12% of Osisko.  

Osisko will take charge of Queenston's Upper Beaver gold project near Kirkland Lake, ON. According to the 43-101 report filed last week, the deposit has 6.87 million indicated tonnes grading 6.62 g/t Au and 0.37% Cu, plus 4.57 million inferred tonnes at 4.85 g/t Au and 0.32% Cu. The indicated category is estimated to contain 1.46 million oz of gold and 50.01 million lb of copper.

Osisko said it can fund Upper Beaver development through internal cash flow. See Osisko.com.

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