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Aerial view of the Canadian Malartic mine facilities, in the Abitibi mining district. (Courtesy of Osisko)
Canadian Goldcorp (TSX:G) (NYSE:GG) has kicked off the week with a $2.6-billion hostile bid for fellow gold miner Osisko Mining (TSX:OSK) that would grant the Vancouver-based company access to the Malartic mine in Quebec.
The proposed deal is in the form of 0.146 of a Goldcorp share plus $2.26 in cash for each Osisko common share, for a total value of $5.95 per share, Goldcorp said in a news release Monday.
Vancouver-based Goldcorp says the unsolicited transaction offers a 15% premium over Quebec-based Osisko’s latest closing share price on Friday.
The Canadian Malartic, Osisko’s only operating mine and main asset, has the potential to produce 500,000 to 600,000 ounces of gold per year over its 16-year mine life, according to the firm.
Goldcorp already has a gold project in Quebec – Éléonore, set to begin production later this year.
If it goes through, the proposed deal will make Goldcorp, which already is world’s largest gold miner by market capitalization, the No. 1 gold producer in the province of Quebec.
