Goldcorp ups Osisko stake

RTGAM






Goldcorp is fanning takeover speculation by continuing to pick up shares in Osisko Mining, a junior play that owns Canada's largest untapped gold deposit.

In two purchases, one in mid August and the second on Sept. 1, Goldcorp dropped $3.4-million to buy another 492,300 shares in Osisko at $7 each, according to regulatory filings. This comes after the senior company revealed in early August that it had built a 13 per cent stake Osisko, which owns a promising property in Quebec.

These purchases were flagged by a reader who got an update from a service called INK Research , which in turn was trolling through SEDI filings.

Takeover talk has surrounded Osisko for months, as the company raised money and obtained the permits needed to develop a mine that's expected to cost $930-million.

While the project has more than a few complications - the company must move 200 houses, a daycare centre, church and school in the Quebec town of Malartic to make room for the mine - Osisko has consistently said it plans to go it alone.

Larger mining companies may take a different view. In addition to Goldcorp, the likes of Barrick Gold, Kinross Gold and Newmont Mining get mentioned as potential suitors.

After the bullion and gold stock rally this week, Goldcorp's most recent Osisko share purchase is up in value by 9 per cent. Osisko now has a $2.1-billion market capitalization, while Goldcorp is a $33-billion company.