Gold Fields has agreed to acquire Osisko Mining shares for C$2.16 billion ($1.56 billion) to take full control of the of the Windfall Project in Québec, Canada, subject to approval by Osisko’s shareholders.
The JSE and NYSE listed company offered to pay C$4.90/share ($3.57) in cash which is a premium of 55% to Osisko Mining’s 20-day volume-weighted average trading price on the TSX. Both companies’ boards of directors have approved the transaction, with Osisko Mining directors recommending that shareholders vote in its favor.
The transaction will allow Gold Fields to consolidate the ownership of the Windfall Project that the two companies have been jointly developing on a 50/50 basis. It is envisaged that the deal will be finalised in Q4 2024.
According to Gold Fields, the company is in a strong financial position to satisfy the transaction funding requirements: it holds $424 million in cash and approximately $1.8 billion in undrawn debt facilities, having also received a commitment from several banks to provide $500 million to fund part of the transaction.
“We are pleased to consolidate the remaining 50% interest in Windfall and its highly prospective exploration camp. Deposits with the scale and quality of Windfall, with a highly prospective exploration camp on top of that, are extremely rare, let alone in a world-class jurisdiction like Québec, Canada. Throughout our joint ownership of the project since May 2023, and the due diligence that preceded it, we have developed a strong understanding of Windfall and its potential and view it as the next long-life cornerstone asset in our portfolio,” said Gold Fields CEO Mike Fraser.
Windfall’s proven and probable reserves amount to 3.2 million ounces of gold, measured and estimated resources stand at 4.1 million ounces, and inferred resources at 3.3 million ounces. According to the preliminary feasibility study, gold production at the project could reach 306,000 ounces per year.
Theodor Lisovoy, Editor in Chief, Rough&Polished
