) announced that it has raised its offer to buy all of the
outstanding common shares of Osisko Mining Corporation to C$7.65
per Osisko share for a total consideration of roughly C$3.6
billion ($3.3 billion). Osisko shareholders who tender to the
offer will receive 0.17 of a Goldcorp common share and an
increase in the cash portion of the offer to a total of C$2.92
for each Osisko share.
The increased bid for Osisko represents superior value for its
shareholders and also ensures accretion on key per-share metrics
for Goldcorp shareholders. Osisko shareholders will retain
continued exposure in the Canadian Malartic gold mine and will
participate in Goldcorp's increasing portfolio of world-class
Previously, Goldcorp made an offer to acquire all of the
outstanding common shares of Osisko for about C$2.6 billion
(roughly $2.4 billion) in cash and shares. Under the terms of the
Offer, Osisko shareholders were entitled to receive 0.146 of a
Goldcorp common share and C$2.26 in cash for each Osisko share.
Goldcorp also recently extended its offer date to acquire all of
the outstanding common shares of Osisko to Apr 15, 2014.
Recently, Goldcorp filed National Instrument 43-101 technical
report pertaining to its 100% owned Eleonore project in Quebec
and its 40% owned Pueblo Viejo mine in Central America.
The Eleonore mine is expected to commence production from late
2014. Goldcorp expects gold production in 2014 to be in the band
of 40,000-60,000 ounces. Average annual gold production, once the
mine reaches full production, is expected to be about 600,000
ounces. Gold reserves are expected to be 4 million ounces. Total
capital expenditure is expected to be between $1.8 and $1.9
billion. Roughly $1.3 billion has been already spent for the
completion of the project.
Goldcorp currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the gold mining industry include
AngloGold Ashanti Ltd.
Lake Shore Gold Corp.
Golden Star Resources, Ltd.
). While AngloGold and Lake Shore Gold carry a Zacks Rank #1
(Strong Buy), Golden Star Resources holds a Zacks Rank #2
ANGLOGOLD LTD (AU): Free Stock Analysis
GOLDCORP INC (GG): Free Stock Analysis Report
GOLDEN STAR RES (GSS): Free Stock Analysis
LAKE SHORE GOLD (LSG): Free Stock Analysis
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