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Goldcorp extends closing date of hostile Osisko offer

Canadian Malartic

Canadian Malartic

Photo by Osisko Mining

3rd April 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – The world’s second-largest gold miner by value, Goldcorp, on Thursday said that it would extend its C$2.6-billion hostile offer for Quebec-based gold producer Osisko Mining to April 15.

The offer, which had been rebuffed by Osisko since January, was expected to close on Friday, but Goldcorp said it was still busy conducting due diligence in Osisko’s data room.

On Thursday, Osisko announced that Latin America-focused precious metals miner Yamana Gold would acquire a 50% interest in Osisko's mining and exploration assets in a deal valued at about C$929.6-million that could potentially snub Goldcorp’s bid for Osisko.

"Our due diligence team is making progress, and we look forward to completing a full analysis of the team's findings in due course. In the meantime we will complete our analysis of the alternate scheme proposed between Osisko and a number of other parties,” Goldcorp president and CEO Chuck Jeannes said.

Goldcorp is interested 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.

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.

Under terms of the Goldcorp offer, Osisko shareholders are entitled to receive 0.146 of a Goldcorp common share and $2.26 in cash for each Osisko common share tendered.

Edited by Creamer Media Reporter

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