Canadian Mining Journal

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DEAL: Yamana to buy 50% of Osisko

MONTREAL – In a deal worth $441.5 million in cash and 95.7 million common shares of Yamana Gold, that company and Osisko Mining Corp. have entered into a partnership. Yamana will acquire a 50% interest in Osisko's mining and exploration...



MONTREAL – In a deal worth $441.5 million in cash and 95.7 million common shares of Yamana Gold, that company and Osisko Mining Corp. have entered into a partnership. Yamana will acquire a 50% interest in Osisko’s mining and exploration assets. Total value of the deal is $929.6 million.

Each Osisko common share it to be exchanged for $2.194 in cash, 0.2119 of a Yamana share, and a new Osisko common share.

Osisko will continue to operate the Canadian Malartic gold mine at Malartic, QC, and all other projects under the guidance of a joint management committee. Osisko’s head office will remain in Montreal. Osisko will also retain an additional 2% royalty on all projects of the partnership, except for Canadian Malartic.

Osisko president and CEO Sean Roosen said in a release, “We are extremely pleased today to announce this partnership with Yamana Gold. Since the middle of January our shareholders have been subjected to a low value hostile offer. Today’s announcement brings significantly greater value to our shareholders. It also provides shareholders with a certainty of their ability to continue participating in the future upside of our very strong free cash flowing Canadian Malartic mine.”

Yamana’s assets include eight gold mines in Mexico and South America as well as three development projects in Brazil.

“This transaction provides an entry into a new world class North American jurisdiction with an immediate increase in production and improvement to our already low cost structure, in addition to the significant and immediate positive impact to our current and future cash flow generation,” stated Peter Marrone, chairman and CEO of Yamana.

Additional details are available at both Yamana.com and Osisko.com.