Boston, MA 06/19/2014 (wallstreetpr) – Yamana Gold Inc. (USA) (NYSE:AUY) and Agnico Eagle Mines Ltd. (USA) (NYSE:AEM) have completed the acquisition of Osisko Mining Corp (TSE:OSK). After the complete acquisition of outstanding and issued shares of Osisko Mining, Osisko is now jointly owned by Yamana and Agnico Eagle. Now 50% shares of Osisko Mining is owned by Yamana and Agnico have got rights over the other 50% shares of Osisko.
The deal between Yamana and Agnico
Back in April, 2014 Yamana and Agnico Eagle joined hands to acquire Osisko for C$3.9 billion. Paying nearly $7.42 for each share, the total acquisition of Osisko added up to $3.5 billion. The acquisition offer said C$1 billion to be paid in cash and C$2.33 billion in Yamana and Agnico Eagle shares. The rest of the C$575 million were to be paid off as the shares of the new company “Spinco.”
Yamana Gold Inc. (USA) (NYSE:AUY) and Agnico Eagle Mines Ltd. (NYSE:AEM) have made a joint committee for operating the Canadian Malartic Mine in Quebec. As per the agreement, some of the assets of Osisko were transferred to Osisko Gold Royalties Ltd. The transferred assets include the C$157 million cash, 5% net smelter royalty, the Hammond Reef project and 2% net smelter royalty on Kirkland Lake assets. All the liabilities and assets of Osisko in Guerrero camp along with some other investments have also been transferred to Osisko Gold Royalties.
Acquisition benefiting both the companies
The acquisition of Osisko is a perfect strategic fit for both Yamana Gold Inc. (USA) (NYSE:AUY) and Agnico Eagle Mines Ltd. (NYSE:AEM). With the strong incoming cash from the larger business, Agnico Eagle will be managing its debts. Agnico Eagle is also expecting to enrich its profile with the Kirkland Land project. With this acquisition of Osisko, Yamana will mark a strong presence in Canada. Joining hands with Agnico Eagle will help Yamana in establishing its presence in Canada. For the Kirkland Lake, assets Yamana will be developing an exploration program. The acquisition will help both Agnico and Yamana in expanding their business scale.