Osisko Mining Inc T.OSK

The worst deal in Canadian mining history

[DaveG999]

GFI " ultimately represent an investment of C$1.2 billion to acquire its interest," yet only $959mm is acounted for in this news release.

The market acted as if it knew this was coming for 3 weeks, implying heavy insider selling. That happens to be a crime. 

Why is shareholder approval not required for a deal of this size?  

Why did the stock lose nearly 20% at the open. 

Why is GFI up 5% when it is the acquireor and OSK  down 6% when gold bullion is up $33 for the day (1PM)

Why was there no news conference in Canada explaining how C$1.2 is the value here, implying $2.4b value for the entire company.

Why didnlt' the compnay continue to drill with the money it had just raised to command a higher price for its shareholders - on the cusp of a major increase in the value of its product?

[houbahop]

From the PR, Gold Field is paying: (all amounts in CAN$) To Osisko: $300m + $300m (year 0), $17m (year 1) and 17m (year 2). Total: $634m To the JV: $250m/2  (pre-construction) + $789m/2 (construction). Total: $520m Total cash invested by Gold Field: $1.154B Osisko will be paying $520m to the JV for pre-construction and construction. The value of the JV with gold at $2 700 CAD / oz 3.2m

[DaveG999]

Thanks for that.  What we have is the introduction of an entirely new entry they call 'pre-construction costs', not in the summary of the FS on the website of $250 million.  The capital cost remained steady at $789 million. At the least that would be a failure to disclose. And shareholders still have no clue of what that $250 million actually covers. And why it was left out of

[houbahop]

Dave, Osisko could not have develop the mine by itself. Here they have the perfect partner and he pays $634m just to sit at the table. It gives Osiko the financial strenght to pay for its 50% share of the cost to develop the mine + some leaway without borrowing a dime.. Payback in 1.5 years? No mine can do this. Where have you seen this? After all this time working to find a partner, I think