Hedge funds slash bullish wagers on gold over Trump election win
The precious metal has fallen about 8% from a record high on Oct. 31, with losses accelerating after Trump’s election victory last week.
A friendly deal that will see 100% of the shares of Osisko Mining Corp. (TSX:OSK) acquired by Agnico Eagle Mines (TSX:AEM) and Yamana Gold (TSX:YRI) has received court approval.
In April, Yamana and Agnico Eagle had offered $3.9 billion for 100% of Osisko’s shares. Each party will receive a 50% interest in Osisko’s Malartic gold mine project in Quebec.
Sean Boyd, President and Chief Executive Officer of Agnico Eagle, and Peter Marrone, Chairman and Chief Executive Officer of Yamana Gold issued the following joint statement: “We are pleased and excited with the record monthly production and mill throughput that were delivered by Osisko at Canadian Malartic for the month of May,” said Sean Boyd, president and chief executive officer of Agnico Eagle, and Peter Marrone, chairman and chief executive officer of Yamana Gold in a joint statement.
“These increased levels reflect the significant potential for the Partnership to leverage Agnico and Yamana’s respective expertise to unlock additional value through further optimizations at the operation.”
Osisko had been the target of an attempted hostile takeover by Goldcorp (TSX:G) earlier this year. Osisko shareholder voted against the offer, which originally stood at $2.6 billion and was later increased to $3.6 billion.
Goldcorp stepped back from its takeover bid, valued at $3.6 billion, on April 21 after Yamana and Agnico made its offer and Osisko shareholders voted 100% in favour of this transaction.
The acquisition is expected to be completed June 16.
By Emma Crawford Hampel
