Peru’s small miners block highways, camp outside Congress demanding registry extension
Analyst says that there are strong competing interests between Congress and small-scale miners that could escalate.
Against expectations Goldcorp (TSE:G)(NYSE:GG) last week sweetened its hostile bid for Osisko Mining Corp. (TSE:OSK) to $3.6 billion, trumping a friendly proposal by Yamana Gold Inc (TSX:YRI)(NYSE:AUY).
Goldcorp raised its hostile offer to Cdn$7.65 per share from about Cdn$6.30.
The miner, at $21.5 billion the world’s second most valuable gold miner after Barrick Gold, is primarily after Osisko’s low-cost Canadian Malartic gold mine in Quebec.
The week before Osisko unveiled a complex “white knight” bid by Canadian miner Yamana Gold for 50 percent of its assets, valuing Osisko at about Cdn$3.3 billion, or Cdn$7.60 per share.
Investment site Motley Fool argues “if investors were to favor any deal they would most likely go with Goldcorp’s offer as it has a few advantages:
Kitco reports a research note by Canadian bank CIBC also believe the Goldcorp bid could be viewed more favourably by investors, even though the new bid is only slightly higher than the value of the Yamana partnership:
Osisko CEO Sean Roosen shows off Canadian Malartic’s first gold bar poured at inauguration
“We believe the acquisition, if successful, offers meaningful low-risk production growth at acceptable costs to Goldcorp. Given Goldcorp’s current cash and available credit on hand, we believe Goldcorp has the financial capability to complete the transaction by the end of April.”
“Goldcorp’s increased offer represents straightforward and superior value to Osisko shareholders,” said chief executive officer Chuck Jeannes after announcing the improved offer, adding it also ensures “accretion on key per-share metrics for Goldcorp shareholders.”
