Canadian Mining Journal

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TAKEOVER: Goldcorp comes out swinging at Osisko-Yamana deal

VANCOUVER – Goldcorp has reviewed the documents related to the proposed deal between Osisko Mining Corp. and Yamana Gold, and the Vancouver suitor says the offer is lacking. Goldcorp says the disclosure documents provide more information...


VANCOUVER – Goldcorp has reviewed the documents related to the proposed deal between Osisko Mining Corp. and Yamana Gold, and the Vancouver suitor says the offer is lacking. Goldcorp says the disclosure documents provide more information than was made public in the news release of April 2, 2014, announcing the transaction, but that several key questions remain.

Before Osisko shareholders can make an informed decision regarding the disposition of their shares the following must be answered: Will the gold stream be increased, leading to additional debt for the partnership? How would such loan repayments affect the cash flow and dividends? How much exactly are Osisko executives receiving in retention payments? What are the full tax consequences of the proposed deal?

Not surprisingly, Goldcorp would rather see Osisko shares tendered under its sweetened takeover offer. It is offering a deal that values Osisko at $3.6 billion.

Details of the deals are available at Osisko.com, Yamana.com and Goldcorp.com.