TORONTO (Reuters) - Goldcorp Inc
The takeover bid is the Canadian gold sector's first major attempt at a merger and acquisition deal in nearly a year. Miners stung by a 25 percent drop in the price of gold over the last 12 months have focused on cutting costs and slowing down work on growth projects.
Vancouver-based Goldcorp's bid, which works out to C$5.95 per share, represents a 15 percent premium to Osisko's closing share price on Friday.
Goldcorp said Osisko shareholders would receive 0.146 of a Goldcorp share plus C$2.26 in cash for each share they own. The bid will be open until February 19.
A spokeswoman for Osisko was not immediately reachable for comment.
Goldcorp said its offer will not require the approval of its own shareholders. The miner has obtained a $1.25 billion credit facility from Scotiabank which, together with cash on hand, and an undrawn $2 billion credit facility, will be sufficient to fund the cash portion of the offer.
Malartic, Osisko's only operating mine, is likely to produce 500,000 to 600,000 ounces of gold per year over its 16-year mine life, according to the company's website. The mine located in the prolific Abitibi mining district began commercial production in May 2011.
Goldcorp has said it expects to produce between 3.0 million and 3.15 million ounces of gold this year, an increase of 13 to 18 percent from 2013.
Goldcorp is the world's largest gold miner by market capitalization, having surpassed Barrick Gold Corp
Goldcorp's shares closed at C$25.29 on Friday on the Toronto Stock Exchange. Its shares, which closed at $23.19 in New York, were down 1.4 percent at $22.86 in trading before the morning bell on Monday.
(Reporting by Euan Rocha in Toronto and Swetha Gopinath in Bangalore; Editing by Saumyadeb Chakrabarty, Sriraj Kalluvila and Chizu Nomiyama)