Osisko Mining buying Queenston in $550-million deal
Canada’s Osisko Mining Corp. (TSX:OSK) announced Monday it will buy Queenston Mining Inc for about $550 million to get access to gold-rich properties in the Kirkland Lake area in north-eastern Ontario.
The Montreal-based miner’s flagship project is the Canadian Malartic gold mine in the Abitibi mining district in Quebec.
Under the deal, Queenston shareholders will receive 0.611 of an Osisko share for each Queenston share held, which implies an offer of $6 per share based on Osisko’s closing price on the Toronto Stock Exchange on Friday (Cdn $9.82).
The transaction, which includes a $22 million break fee to Osisko under certain circumstances, will add to the company’s net asset value per share and longer-term production and cash flow per share.