) announced that it has commenced its offer to acquire all of the
outstanding common shares of Osisko Mining Corporation. The
company has filed offer and takeover bid circular and related
documents ("Circular") on Osisko's profile with the Canadian
securities regulators. It has also furnished the circular to the
United States Securities Exchange Commission.
As per the offer, Goldcorp will provide Osisko shareholders 0.146
of Goldcorp common share and C$2.26 in cash for each Osisko
common share. Based on Goldcorp's closing share price of C$25.29
on Toronto Stock Exchange (TSX) on Jan 10, the total
consideration offered to Osisko shareholders was C$5.95 per
common share. This represented a premium of 28% over the 20-day
volume-weighted average share price of Osisko from all trading on
Canadian exchanges for the period ending on Jan 10. The offer
will be open till Feb 19.
Goldcorp intends to send the circular to Osisko's shareholders
following the receipt of the information. Goldcorp encourages
Osisko's shareholders to go through the circular to know how to
tender their Osisko shares to the offer.
Goldcorp recently announced its plans to acquire all of the
outstanding common shares of Osisko for about C$2.6 billion ($2.4
billion) in cash and shares. According to Goldcorp, the main
attractions of the deal are the large ten-million ounce gold
reserve. With Goldcorp's financial and technical resources, the
gold reserve will support a long mine life and low all-in
sustaining costs, and the immediately accretive per-share
metrics, including free cash flow, operating cash flow, net asset
value, gold production and gold reserves.
The deal will also be beneficial to Goldcorp as it will be
provided with immediate free cash flow after the completion of
the construction of its key growth projects at Cerro Negro,
Eleonore and Cochenour over the next eighteen months.
With the deal in place, Goldcorp will get opportunities to
leverage its existing investments in Quebec and Ontario along
with corporate and regional synergies. Goldcorp's substantial
investment in the Province of Quebec, which is one of the best
mining jurisdictions in the world, makes the deal more
Osisko shareholders will be entitled to participate in
Goldcorp's monthly dividend. The shareholders will gain access to
Goldcorp's suite of low-cost mines and development projects, and
can participate in Goldcorp's strong production growth
Goldcorp, a prominent mining company along with
Barrick Gold Corporation
Newmont Mining Corporation
Freeport McMoRan Copper & Gold
), is expected to release its fourth-quarter 2013 results on Feb
13. Goldcorp currently carries a Zacks Rank #3 (Hold).
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