Canadian gold producer Goldcorp has offered to buy rival company Osisko Mining in a C$2.6bn ($2.4bn) cash and stock deal.

Osisko is a Canadian precious-metals mining company based in Montreal, Québec. It operates in Canada with a focus on gold mines in the Abitibi gold belt of Québec.

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As per the offer terms, Osisko shareholders will receive 0.146 of a Goldcorp common share plus C$2.26 in cash for each Osisko common share.

Goldcorp noted that the proposed transaction offers a 15% premium over Osisko’s last closing share price.

"We are particularly pleased to be making a further substantial investment in the Province of Québec, one of the best mining jurisdictions in the world."

Goldcorp believes that the transaction will provide the company with immediate free cash flow, as it completes the construction and ramp-up of its key growth projects at Cerro Negro, Éléonore and Cochenour over the next 18 months.

The deal also leverages Goldcorp’s existing investments in Québec and Ontario with the opportunity for corporate and regional synergies.

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Goldcorp president and CEO Chuck Jeannes said this offer represents a transaction that is consistent with the company’s strategy of improving the quality of their portfolio.

"We are particularly pleased to be making a further substantial investment in the Province of Québec, one of the best mining jurisdictions in the world," Jeannes said.

"With our world-class Éléonore project in Northern Québec due to commence production later this year, Goldcorp will be the largest gold producer in the province with the resources to continue building collaborative, long-term relationships while leveraging corporate and regional synergies."

Goldcorp produced about 2.67m ounces of gold last year and said the acquisition will increase the company’s annual gold production by about 18%.

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