TORONTO (miningweekly.com) – Canada's second-biggest gold-miner, Goldcorp, has boosted its holding in Osisko Mining to about 12,9%, the company announced on Monday.

Goldcorp has bought 8,46-million shares and 4,27-million warrants of Osisko, the firm said.

Osisko, which is seen as a potential takeover target, is developing the large Malartic gold project, in Quebec, and expects to start production in 2011.

The Malartic project, which is expected to be Canada's biggest openpit mine, has a proven and probable mineral reserve estimate of 6,28-million ounces, and, including the adjacent Barnat deposit, a measured and indicated resource of 3,65-million ounces and an inferred resource of 0,84-million ounces.

In February this year, Osisko raised C$403-million in a bought-deal offering, making it one of the first junior miners to raise equity finance after markets froze up in the fourth quarter of 2008.

The company also raised C$10,64-million for exploration in a flow-through financing in June, and another C$75-million by offering a convertible debenture last month.

Goldcorp has acquired the common shares and warrants of Osisko for investment purposes and “has no present intention to increase its holdings in Osisko although it will evaluate the investment in Osisko and whether to increase or decrease its shareholdings in response to market conditions, the business and prospects of Osisko and other factors”, the firm said.