Gold Fields has set its sights on acquiring Osisko Mining, in a bold deal worth C$2.16B (US$1.6B). The move comes during (quite literally) a golden moment in the markets, with gold prices reaching record-highs, naturally driving a wave of mergers, acquisitions, and expansions.
The acquisition is the latest effort by the Johannesburg-based gold mining company to broaden its operations beyond South Africa. A previous attempt to acquire Yamana Gold, another Canadian gold mining company, was made two years ago but didn’t come into fruition.
Gold Fields has agreed to pay C$4.90 per share for Osisko Mining, representing a 55% premium on Osisko’s trading price as of 9 August, according to a company statement. This acquisition will enable Gold Fields to further extend its operations in the Americas, adding to its existing mines in Chile and Peru.
The deal would result in Gold Fields becoming the exclusive owner of the Windfall project in Quebec, a project it had been co-developing with Osisko in a 50/50 partnership.
Mike Fraser, the chief executive, said in a statement that the company’s understanding and appreciation of the Windfall project has significantly grown over the past two years, starting from the initial due diligence in 2022 to the joint ownership since May 2023. He sees Windfall as a vital, long-lasting asset in their portfolio.
Gold Fields has plans to commence production at the Windfall mine by late 2026 or early 2027, with an eventual annual yield of approximately 300,000oz. This project, along with the recently launched Salares Norte project in Chile, forms a crucial part of Gold Fields’ growth strategy. The company aims to use these projects to compensate for the declining output from its older assets in Ghana and Peru.
Osisko’s board has given unanimous approval to the deal, calling shareholders to support it. Chairman and CEO John Burzynski said the transaction represented an early payout for Osisko investors and also reflected Windfall’s potential.
“In the span of nine years, we’ve transformed Windfall into one of the largest and highest-grade gold development projects globally, and this transaction is a testament to the extraordinary entrepreneurial effort of the Osisko Mining team,” Burzynski said in a separate statement.
