Goldcorp purchase more sharesGoldcorp ups Osisko stake
Friday, September 04, 2009
Goldcorp is fanning takeover speculation by continuing to pick upshares in Osisko Mining, a junior play that owns Canada’s largestuntapped gold deposit.
In two purchases, one in mid August andthe second on Sept. 1, Goldcorp dropped $3.4-million to buy another492,300 shares in Osisko at $7 each, according to regulatory filings.This comes after the senior company revealed in early August that ithad built a 13 per cent stake Osisko, which owns a promising propertyin Quebec.
These purchases were flagged by a reader who got an update from a service called INK Research , which in turn was trolling through SEDI filings.
Takeover talk has surrounded Osisko for months, as the company raisedmoney and obtained the permits needed to develop a mine that’s expectedto cost $930-million.
While the project has more than a fewcomplications - the company must move 200 houses, a daycare centre,church and school in the Quebec town of Malartic to make room for themine - Osisko has consistently said it plans to go it alone.
Larger mining companies may take a different view. In addition toGoldcorp, the likes of Barrick Gold, Kinross Gold and Newmont Miningget mentioned as potential suitors.
After the bullion and goldstock rally this week, Goldcorp’s most recent Osisko share purchase isup in value by 9 per cent. Osisko now has a $2.1-billion marketcapitalization, while Goldcorp is a $33-billion company.