Canadian precious-metals mining company Osisko Mining has signed a definitive arrangement agreement to acquire all issued and outstanding common shares of mineral exploration company Beaufield Resources.
The deal will be concluded through a statutory plan of arrangement under the Canadian Business Corporations Act.
Beaufield shareholders will receive 0.0482 of a common share of Osisko in exchange for each Beaufield share held immediately prior to the effective time of the arrangement.
Osisko president and chief executive officer John Burzynski said: “We are very pleased to announce today’s proposed transaction with Beaufield.
“By joining Osisko in our large scale exploration and development programme at Windfall, Beaufield Shareholders have the opportunity to capitalise on the strong premium offered today and to benefit from the future growth of our project.”
The transaction is subject to the approval of Beaufield shareholders, which will happen at a special meeting to be held in October this year.
Based in Canada, Beaufield currently focuses on acquisition, exploration and development of precious and base metal resource properties in Québec and Ontario. It has properties in Urban, Eléonore-Opinaca, Tortigny, Hemlo and Launay.
Beaufield president and chief executive officer Ron Stewart said: “We are very pleased to be joining forces with Osisko, which continues to demonstrate its leadership and strength in advancing its portfolio of resource projects including the flagship Windfall district.
“We believe the combination of our projects will provide benefit to the shareholders of both companies and look forward to participating in the future success of Osisko.”
Osisko currently holds a 100% stake in the high-grade Windfall Lake gold deposit in Québec as well as 100% undivided interest in a large area of claims in the Urban Barry area.
The company also owns a 100% interest in the Marban project in Abitibi gold mining district, Ontario, which includes Jonpol and Garrcon deposits on the Garrison property, the Buffonta past producing mine and the Gold Pike mine property.