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Osisko Mining Announces Friendly Acquisition of Queenston; Reports Record Monthly Throughput at Canadian Malartic

Osisko Mining Corporation (OSK.TO) and Queenston Mining Inc. (QMI.TO) announced that they have entered into a definitive agreement that will see Osisko acquire, by way of a court-approved plan of arrangement, all of the issued and outstanding common shares of Queenston, a Canadian mineral exploration and development company with a primary focus on its holdings in the historic Kirkland Lake gold camp comprising lands on trend with Osisko's flagship Canadian Malartic mine.

Osisko also reported that it has achieved a record monthly throughput at its flagship Canadian Malartic Mine in the month of October. The mill processed a new record of 1,530,195 tonnes in the month of October, producing 36,440 ounces of gold in the month

Under the terms of the Queenston Agreement, Queenston shareholders will receive 0.611 of an Osisko share for each common share of Queenston held, implying an offer of C$6.00 per share based on Osisko's closing price on the Toronto Stock Exchange on November 9, 2012. The offer represents a 45% premium to Queenston's 30-day volume-weighted average price for the period ending November 9, 2012.

The transaction values Queenston's equity at approximately C$550 million on a fully diluted in-the-money basis and implies an enterprise value of approximately C$400 million. Pro forma the transaction, Queenston shareholders will own approximately 12% of Osisko (based on fully diluted in-the-money shares outstanding).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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