Aerial view of Osisko鈥檚 Malartic mine.
Canadian gold miners Agnico Eagle Mines (TSX:AEM) and Yamana Gold (TSX:YRI) have teamed up to buy Osisko Mining Corp. (TSX:OSK) in a .
The cash-and-stock bid, , values Osisko at $8.15 a share, which is 11% more than what they鈥檇 get if they accepted the Inc. (TSX:G) (NYSE:GG).
The world鈥檚 second most-valuable gold miner after Barrick Gold (TSX:ABX) is seeking聽to take control of Osisko鈥檚 low-cost Malartic gold mine in Quebec.
Osisko shareholders will get $1bn in cash, $2.33bn of Agnico and Yamana shares, and shares of a new spin-off company valued at roughly $575 million, which will have a royalty on the Malartic mine.
鈥淲ith the announcement today of the combined bid by Yamana and Agnico Eagle, I believe we have delivered shareholders the superior value option to the hostile attempt to acquire our company,鈥� Osisko chief executive Sean Roosen .
He added that the 鈥渘ew Osisko鈥� would be a company with regular and strong cash flow, strong future potential for increasing cash flow, and tremendous upside exploration potential.鈥�
The news coincides of wanting to replace the board of directors at Osisko with its own slate of nominees.
The Vancouver-based gold company said it would nominate 11 people, including its own chief executive Chuck Jeannes, to the Osisko board for election at the company鈥檚 annual meeting next month.
Osisko agreed to pay a $195 million break fee to Agnico and Yamana if the transaction does not go ahead. The deal needs the approval of Osisko shareholders by a two-thirds vote.