Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The ongoing dispute between Canadian miners Goldcorp (TSX:G) (NYSE:GG) and Osisko (TSX:OSK) will be kept outside courts, as both companies reached a settlement Monday over Osisko’s legal action aimed at blocking the gold giant’s $2.6-billion hostile takeover offer.
The announcement was only hours before Osisko’s court action was set to begin in Quebec Superior Court today.
Under terms of the agreement, Vancouver-based Goldcorp has agreed not to take up and pay for shares deposited to its hostile offer before April 15. Osisko, in turn, committed to waive its shareholder-rights plan and provide Goldcorp with access to due diligence data.
Goldcorp, which is seeking access to access to Osisko’s Malartic mine in Quebec, already has a gold project in the province – 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.
