Agnico Eagle and Yamana Gold Finalize Acquisition of Osisko Mining
Mining companies Agnico Eagle and Yamana Gold have announced the completion of the Osisko Mining Corporation acquisition, jointly acquiring 100 percent of the company. Both companies now each own 50 percent of Osisko and have formed a joint committee to operate the company’s Canadian Malartic mine in Quebec, Canada.
"With the acquisition of Osisko now completed, Agnico Eagle looks forward to working with Yamana to further optimize the Canadian Malartic mine and build on the solid operational performance achieved in May 2014," said Sean Boyd, President and Chief Executive Officer of Agnico Eagle.
The deal for Osisko Mining was finalized after the offer was subsequently approved by the company’s shareholders and by the courts. Osisko’s common shares will be de-listed from the Toronto Stock Exchange (TSX) at the close of business today. Each outstanding share of Osisko will be exchanged for: C$2.09 in cash; 0.07264 of an Agnico Eagle common share; 0.26471 of a Yamana common share; and 0.1 of one common share of Osisko Gold Royalties Ltd.
According to Boyd, Agnico Eagle and Yamana will now work together to explore and possibly develop the Kirkland Lake assets and continue exploration at the Hammond Reef, Pandora, and Wood-Pandora properties."In addition, we are jointly reviewing the Kirkland Lake portfolio with the intent of designing an exploration program to expand and upgrade the current resource base to further enhance shareholder value.”
The acquisition of Osisko will allow Canadian-based Yamana Gold to continue building its gold production through existing operating mine expansions, including the Malartic mine.
"The completion of our joint acquisition of Osisko and the Canadian Malartic mine adds another cornerstone asset to our portfolio that will contribute significantly to increased production and cash flow levels as we continue to balance top and bottom line growth," said Peter Marrone, Chairman and Chief Executive Officer of Yamana. "We look forward to establishing our presence in Canada as we work with Agnico to unlock additional value at Canadian Malartic and develop an exploration program for the Kirkland Lake assets," added Mr. Marrone.
Agnico Eagle produces precious metals and has eight mines in Canada, Finland and Mexico. The gold mining company has declared a cash dividend every year since 1983.
Yamana Gold is a major gold producer with considerable gold production, gold development stage properties, exploration properties, and land positions through the Americas.
Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.