TORONTO (miningweekly.com) – The world’s second-largest gold miner by value, Goldcorp, has lifted its hostile takeover offer for Quebec-based miner Osisko Mining to about C$3.6-billion, or C$7.65 a share. This is higher than the current friendly offer from Latin America-focused precious metals miner Yamana Gold, which is valued at C$3.3-billion, or C$7.60 a share.

The sweetened offer came despite Goldcorp having previously indicated that it would likely not increase its offer for Osisko.

Osisko responded, saying that it would consider Goldcorp's offer.

Early this month, Yamana announced that it would acquire a 50% interest in Osisko's mining and exploration assets in a convoluted ‘white knight’ deal valued at about C$929.6-million, that could potentially snub Goldcorp’s bid for Osisko.

Goldcorp on Thursday raised its offer from C$5.95 a share to C$7.65 a share in its bid to gain control over Osisko's flagship Canadian Malartic gold mine, which Osisko expects to produce between 525 000 oz and 575 000 oz of gold this year, up from 475 277 oz in 2013, as the mine was still ramping up output since declaring commercial production in May 2011.

The offer represented a premium to the closing price of Osisko’s TSX-listed stock on Wednesday, similar to when it launched the initial offer in January, which had prompted Osisko shares to rise rapidly over the following weeks.

Under the new terms of Goldcorp’s offer, Osisko shareholders would receive 0.17 of a Goldcorp share and C$2.92 in cash for each Osisko share. The offer represented a premium of 1.3% over Osisko's closing price of C$7.55 on Wednesday on the TSX. In early trading on Thursday, Osisko’s stock was already trending higher at up to C$7.77 apiece.

Osisko had rejected Goldcorp’s takeover bid several times since January, saying it represented insufficient value for its assets.

Last month, Osisko settled a lawsuit against its suitor, under which Goldcorp agreed not to take up and pay for shares deposited to its hostile takeover bid before April 15.

In return, Osisko agreed to waive the application of its shareholder rights plan before April 14, to provide Goldcorp access to due diligence materials and to terminate its court proceeding against Goldcorp.

“Goldcorp's increased offer represents straightforward and superior value for Osisko shareholders, while ensuring accretion on key per-share metrics for Goldcorp shareholders. Osisko shareholders will retain continued exposure to a consolidated and unencumbered interest in the Canadian Malartic gold mine and will participate in Goldcorp's growing portfolio of world-class assets,” Goldcorp president and CEO Chuck Jeannes said.

“The choice is clear for Osisko's shareholders.”