Canadian Mining Journal

News

TAKEOVER: Price for Osisko jumps to $3.9B in new 3-way deal

MONTREAL and TORONTO – Osisko Mining Corp., Yamana Gold and Agnico Eagle Mines have arrived at a three-way friendly agreement whereby Yamana and Agnico Eagle together will purchase all of Osisko's outstanding common shares for total...


MONTREAL and TORONTO – Osisko Mining Corp., Yamana Gold and Agnico Eagle Mines have arrived at a three-way friendly agreement whereby Yamana and Agnico Eagle together will purchase all of Osisko’s outstanding common shares for total consideration of $3.9 billion or $8.15 per share. The new offer trumps Goldcorp‘s recent $3.6 billion bid for Osisko.

The total offer consists of approximately $1.0 billion in cash, $2.3 billion in Yamana and Agnico Eagle shares, and creation of a new company (new Osisko) with an implied value of approximately $575 million.

For each common share they hold, Osisko shareholders can receive $2.09 in cash, 0.26471 of a Yamana share, 0.07264 of an Agnico Eagle common share, and one new common share of new Osisko with a value of $1.20 per share. Following the transactions, Osisko shareholders will own about 14% of Yamana and 17% of Agnico Eagle.

Sean Roosen, president and CEO of Osisko said, “The new Osisko will be well funded with $155 million in cash, strong participation in the future cash flow from the Canadian Malartic camp [in Quebec] through our 5% NSR, potential future benefits from the balance of Osisko’s Canadian exploration portfolio through an overall 2% NSR, and a 100% ownership of Osisko’s significant greenstone exploration project in Guerrero [Mexico]. The new Osisko will be a company with regular and strong cash flow, strong future potential for increasing cash flow, and tremendous upside exploration potential.”

Meanwhile, the optimists at Goldcorp have released a list of its nominees to the Osisko board, should it ultimately gain control of the company.

Details of all offers are available on the individual websites of each company involved: AgnicoEagle.com, Osisko.com, Yamana.com and Goldcorp.com.