McEwen’s Los Azules copper project gets key environmental approval
The company anticipates construction to begin as early as 2026.
Aerial view of Osisko’s Malartic mine.
Canadian gold miners Agnico Eagle Mines (TSX:AEM) and Yamana Gold (TSX:YRI) have teamed up to buy Osisko Mining Corp. (TSX:OSK) in a friendly acquisition deal worth $3.9 billion.
The cash-and-stock bid, said the companies in a statement, values Osisko at $8.15 a share, which is 11% more than what they’d get if they accepted the recent $3.6bn hostile offer from Goldcorp Inc. (TSX:G) (NYSE:GG).
The world’s second most-valuable gold miner after Barrick Gold (TSX:ABX) is seeking to take control of Osisko’s low-cost Malartic gold mine in Quebec.
Osisko shareholders will get $1bn in cash, $2.33bn of Agnico and Yamana shares, and shares of a new spin-off company valued at roughly $575 million, which will have a royalty on the Malartic mine.
“With the announcement today of the combined bid by Yamana and Agnico Eagle, I believe we have delivered shareholders the superior value option to the hostile attempt to acquire our company,” Osisko chief executive Sean Roosen said in a statement.
He added that the “new Osisko” would be a company with regular and strong cash flow, strong future potential for increasing cash flow, and tremendous upside exploration potential.”
The news coincides with Goldcorp’s announcement Wednesday of wanting to replace the board of directors at Osisko with its own slate of nominees.
The Vancouver-based gold company said it would nominate 11 people, including its own chief executive Chuck Jeannes, to the Osisko board for election at the company’s annual meeting next month.
Osisko agreed to pay a $195 million break fee to Agnico and Yamana if the transaction does not go ahead. The deal needs the approval of Osisko shareholders by a two-thirds vote.
