100% of Osisko shares court-approved for purchase by Agnico Eagle and Yamana
Osisko's Canadian Malartic records record production. — Photo courtesy Osisko Mining
Osisko Mining Corporation ("Osisko")(TSX:OSK)(FRANKFURT:EWX) Yamana Gold Inc. (TSX:YRI)(NYSE:AUY) ("Yamana") and Agnico Eagle Mines Limited (TSX:AEM)(NYSE:AEM) ("Agnico Eagle") have announced that they have received final court approval for the joint acquisition of 100% of the outstanding shares of Osisko by Agnico Eagle and Yamana pursuant to a plan of arrangement (the "Arrangement").
Subject to the satisfaction of remaining closing conditions, the effective date of the Arrangement will occur on June 16, 2014.
The Arrangement
Under the Arrangement, each outstanding common share of Osisko will be exchanged for C$2.09 in cash, 0.07264 of a common share of Agnico Eagle, 0.26471 of a common share of Yamana, and one common share (one tenth of a common share on a consolidated basis) of a newly formed company that will acquire certain assets of Osisko as part of the Arrangement ("Osisko Gold Royalties Ltd ").
May Production of 51,114 Ounces of Gold
Osisko is pleased to report that Osisko's flagship Canadian Malartic mine has achieved record monthly gold production in the month of May. Statistics for May are presented below:
- Record monthly gold production of 51,114 ounces
- Record monthly mill throughput of 1,709,572 tonnes
- Record average daily throughput of 55,147 tonnes per calendar day
- Average grade milled of 1.00 g/t Au
- Average recovery of 88.7%
Since commencement of milling operations in April 2011, Canadian Malartic has produced 1,292,043 ounces of gold.
Sean Roosen, President and Chief Executive Officer of Osisko stated: "Canadian Malartic has proven itself to be a world class gold deposit. We would like to thank all of our shareholders, our employees, the residents of Malartic, the Malartic town council and the Quebec government officials who have supported Osisko over the years. We have been proud to have been able to work to bring you the benefits of Canadian Malartic from conception to reality. We appreciate your support and look forward to your continued participation in the benefits of Canadian Malartic through Osisko Gold Royalties Ltd. Not least, as royalty holders, we hope for the continued success of Canadian Malartic, soon to be operated under the Canadian Malartic Partnership, a 50/50 joint venture between Agnico Eagle and Yamana."
Sean Boyd , President and Chief Executive Officer of Agnico Eagle, and Peter Marrone , Chairman and Chief Executive Officer of Yamana Gold issued the following joint statement: "We are pleased and excited with the record monthly production and mill throughput that were delivered by Osisko at Canadian Malartic for the month of May. These increased levels reflect the significant potential for the Partnership to leverage Agnico and Yamana's respective expertise to unlock additional value through further optimizations at the operation. We look forward to building on the track record of solid operational performance at Canadian Malartic.
With that objective in mind, our integration efforts continue to advance according to plan as we progress towards closing the transaction. We have been impressed with the level of collaboration and partnership our teams have achieved in a short period of time and we expect a successful transition of operations post-close."
