Yamana Gold and Agnico Eagle Mines have agreed to jointly acquire Osisko Mining for C$3.9bn ($3.6bn).

As per the deal, Yamana and Agnico Eagle will form a joint acquisition entity with each company holding a 50% interest.

The entity will acquire all of the outstanding common shares of Osisko by way of a plan of arrangement.

Upon completion of the transaction, Yamana and Agnico Eagle will form joint committees to operate the Canadian Malartic Mine in Québec.

The companies will also explore and develop the Kirkland Lake assets, and continue the exploration at Hammond Reef, Pandora / Wood and Pandora properties, all located in Ontario.

"The new Osisko will be a company with regular cashflow, future potential for increasing cashflow and upside exploration potential." 

Osisko Mining president and CEO Sean Roosen said that the new Osisko will be a company with regular cashflow, future potential for increasing cashflow and upside exploration potential.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

"The new Osisko will be well-funded with $155m in cash, strong participation in the future cashflow from the Canadian Malartic camp through our 5% net smelter royalty (NSR), potential future benefits from the balance of Osisko’s Canadian exploration portfolio through an overall 2% NSR, and a 100% ownership of Osisko’s significant greenstone exploration project in Guerrero," Roosen said.

The transaction is subject to Osisko shareholders approval by a two thirds vote and is anticipated to be completed by 30 May.

Osisko has agreed to provide a five business day right to Yamana and Agnico Eagle to match a superior proposal, if made to the company.

The company has also agreed to pay a termination fee of C$195m to Yamana and Agnico Eagle, shared equally.