Yamana Gold and Agnico Eagle Mining have teamed up to buy Osisko Mining Corp. for $3.9 billion, an 11 per cent premium to a rival bid for the company from market titan Goldcorp.
Montreal-based Osisko had been an acquisition target of Goldcorp before the Quebec miner sought out a white knight to come up with a better offer than the $2.6 billion that Goldcorp had originally offered. It appears to have found that in Yamana, which added Agnico Eagle to the mix on Wednesday.
Osisko's main asset is the Canadian Malartic mine in Quebec. The deal will see Osisko shareholders receive shares in a new company that will own Malartic and the company's existing exploration properties, as well as $155 million in cash and the company's Guerrero exploration project.
Osisko shares were up 45 cents at $7.88 in trading on the Toronto Stock Exchange on Wednesday morning, slightly ahead of the value of the offer and a sign that the market thinks a counteroffer could be coming.
Goldcorp's offer, which would value Osisko at about $3.4 billion, is contingent on shareholders tendering at least 51 per cent.