Osisko Mining announces new deal with Yamana Gold and Agnico Eagle

MONTREAL - Osisko Mining Corp. (TSX:OSK) has signed a new friendly deal valued at $3.9 billion that will see the gold miner acquired by Yamana Gold (TSX:YRI) and Agnico Eagle Mines Ltd. (TSX:AEM) and the creation of a new company.

Osisko's main asset is the Canadian Malartic mine in Quebec.

The offer tops a rival hostile bid by Goldcorp (TSX:G) that was valued at $3.6 billion or $7.65 per share.

Under the stock-and-cash agreement with Yamana and Agnico-Eagle valued at $8.15 per share, Osisko shareholders will receive $2.09 in cash, 0.26471 of a Yamana share, 0.07264 of an Agnico Eagle share and one new share in a new Osisko with a value of $1.20 per share.

The new Osisko will hold a net smelter return royalty on the Canadian Malartic mine as well as the company's existing exploration properties, $155 million cash and all assets and liabilities of Osisko in the Guerrero camp as well as other investments.

The new offer including Yamana and Agnico Eagle follows a decision last week by Goldcorp to raise its bid for the company.

It also tops an earlier arrangement Osisko had signed with Yamana and two of Canada's largest pension funds that valued Osisko at about $3.4 billion.