Osisko Mining (TSX:OSK, Stock Forum), a Montreal-based firm engaged in acquiring, exploring, developing and operating gold properties in Canada and abroad, announced today that the company had entered into a friendly acquisition agreement with Yamana Gold Inc.(TSX: T.YRI, Stock Forum) and Agnico-Eagle Mines Ltd. (TSX: T.AEM, Stock Forum) where Yamana and Agnico Eagle will acquire 100% of the company's issued and outstanding shares for a total consideration of $3.9 billion or $8.15 per share.
According to the news release, “The total offer consists of approximately C$1.0 billion in cash, C$2.3 billion in Yamana and Agnico Eagle shares, and creation of a new company ("New Osisko") with an implied value of approximately C$575 million.”
The release went on to note that the current offer shows an 11% premium to the current hostile Goldcorp bid that locked both the company and Goldcorp Inc. (TSX: T.G, Stock Forum) in an acrimonious flurry of accusatory press releases.
Terms of the agreement have Agnico and Yamana forming a joint acquisition entity with each owning 50% of Osisko and upon completion of the transaction, Yamana and Agnico Eagle will form joint committees for the operation of Osisko's Malartic Mine located in Quebec.
Exploration will jointly be carried out with the potential of developing the Kirkland Lake assets, as well as continuing the exploration at Hammond Reef, Pandora/Wood and Pandora properties located in Ontario.
Agnico Eagle, Yamana and Osisko will hold a joint conference call today at 10:00am to discuss the transaction further.
Yamana Chairman and CEO, Peter Marrone, commented, “Agnico Eagle has approximately 50 years of operating history in Québec, and over that time the company has continued to expand its mining presence in a measured and systematic way.”
He went on to conclude, “This transaction further enhances our Québec operating platform through the addition of a fourth producing mine. With this acquisition, Agnico Eagle will become Québec's largest gold producer, which demonstrates our commitment to Québec and various stakeholders in the province.”
Osisko was in the news recently when the company announced an intersection of 1.53 g/t gold over 87 metres at Upper Beaver two days ago.
Shares climbed 5.92% on the news to $7.87 per share.
Currently there are 439.8m outstanding shares with a market cap of $3.5 billion.