- Osisko Mining Inc. (TSX:OSK) has made a deal to be acquired by South African miner Gold Fields Ltd. for C$2.16 billion
- This acquisition grants Gold Fields complete ownership of the high-grade Windfall Project in Québec, which it is jointly developing with Osisko in the province
- Gold Fields plans to commence production at the mine in late 2026 or early 2027, ramping up output to approximately 300,000 ounces annually
- Osisko Mining Inc. (TSX:OSK) last traded at C$2.94 per share
Osisko Mining Inc. (TSX:OSK) has made a deal to be acquired by South African miner Gold Fields Ltd. for C$2.16 billion.
The agreement aims to help the South African producer expand its footprint in the Americas, where it already operates mines in Chile and Peru. This acquisition grants Gold Fields complete ownership of the high-grade Windfall Project in Québec, which it is jointly developing with Osisko in the province.
With gold prices hovering near record levels, the soaring value of the precious metal is prompting producers to pursue expansion opportunities.
“This premium transaction represents a strong and near-term outcome for our shareholders and is reflective of the truly world-class nature of the Windfall Project,” Osisko’s chairman and chief executive officer, John Burzynski, said in a news release. “In the span of nine years, we’ve transformed Windfall into one of the largest and highest-grade gold development projects globally, and this transaction is a testament to the extraordinary entrepreneurial effort of the Osisko Mining team. Gold Fields is a globally diversified senior gold producer with an impressive track record of successfully building and operating mines. As our joint venture partner at Windfall, Gold Fields knows the asset well and understands the significance of the strong relationships that we have built in Québec with all of our stakeholders. Moreover, Gold Fields share our core principles of operating in a safe, inclusive and socially responsible manner. They are well suited to take Windfall into production and we wish them all the best going forward.”
The Johannesburg-based gold producer will pay C$4.90 per share, representing a 55 per cent premium in this all-cash transaction.
Gold Fields plans to commence production at the mine in late 2026 or early 2027, eventually ramping up output to approximately 300,000 ounces annually.
This follows nearly two years after Gold Fields’ attempt to acquire another Canadian miner, Yamana Gold, was thwarted by a competing offer.
Osisko is a mineral exploration company focused on the acquisition, exploration and development of precious metal resources in Canada.
Osisko Mining Inc. (TSX:OSK) last traded at C$2.94 per share.
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(Top photo: Osisko Mining)