Resource World Magazine

www.resourceworld.com 41 F E B R U A R Y / M A R C H 2 0 1 4 Goldcorp makes bid for Osisko Mining Goldcorp Inc. [G-TSX; GG-NYSE] has made an offer to acquire all of the outstanding common shares of Osisko Mining Corp. [OSK-TSX] for approximately CDN $2.6 billion in cash and shares. Osisko owns the producing Canadian Malartic gold mine in northern Quebec as well as a number of exploration projects. Goldcorp already has an advanced gold project in Quebec – the Éléonore – that is scheduled for production later this year. Under the terms of the offer, Osisko shareholders will be enti - tled to receive 0.146 of a Goldcorp common share plus CDN $2.26 in cash for each Osisko common share. Based on Goldcorp's TSX closing share price of CDN $25.29 on January 10, 2014, the total consideration offered to Osisko shareholders is CDN $5.95 per Osisko common share, representing a premium of 28% over the 20-day volume-weighted average share price of Osisko from all trading on Canadian exchanges for the period ending January 10, 2014 and a premium of 15% over Osisko's TSX closing share price on January 10, 2014. Osisko's Canadian Malartic Mine hosts total proven and prob - able mineral reserves estimated at 310.6 million tonnes grading 1.01 g/t gold for 10.1 million ounces that should support a long mine life and low all-in sustaining costs. "From a financial and strategic perspective, this offer repre - sents a compelling transaction that is consistent with our strategy of improving the overall quality of our portfolio," said Chuck Jeannes, Goldcorp President and CEO. "Goldcorp shareholders will benefit from a long-lived, high-quality gold mine with low all-in sustaining costs capable of generating long-term free cash flows." Osisko Mining's board of directors, on the recommendation of its special committee, unanimously recommended that Osisko shareholders reject the hostile takeover bid launched by Goldcorp Inc. on January 14, 2014, and not tender their Osisko shares to the Goldcorp offer. Osisko has commenced a legal proceeding against Goldcorp in the Quebec Superior Court. In the Quebec proceeding, Osisko alleges that, in making its hostile takeover bid for Osisko, Goldcorp misused confidential information and otherwise acted in a manner not permitted by the confidentiality agreement between the parties. n

• Cover