Goldcorp makes C$2.6 billion offer for Osisko Mining
Goldcorp Inc launched a bid to Osisko Mining Corp for C$2.6 billion in cash and stock to gain access to Osisko's Malartic Mine in Quebec.
The bid, which works out to C$5.95 per share, represents a 15 percent premium to Osisko's closing share price on Jan. 10.
Goldcorp said that Osisko shareholders would receive 0.146 of a Goldcorp share plus C$2.26 in cash for each share they own. The bid will be open until February 19, Reuters reported.
Malartic, Osisko's only operating mine, is likely to produce 500,000 to 600,000 oz/year of gold during its 16-year mine life, according to the company's website.
The mine in the Abitibi mining district started commercial production in May 2011.
Goldcorp has said it expects to produce between 3 million and 3.15 million oz of gold this year, an increase of 13 to 18 percent from 2013.
A drop in prices and higher costs are weighing on gold miners' cash flow, but Goldcorp had said it was open to takeovers and may even consider big, capital-intensive gold-mining projects, Reuters reported.
Goldcorp is the world's largest gold miner by market capitalization, surpassing Barrick Gold Corp , the world's biggest producer of the metal.