Yamana Gold Inc. (Yamana) and Osisko Mining Corporation (Osisko) announced on April 2, 2014 that they have entered into an agreement (“the Agreement”) pursuant to which Yamana will acquire a 50% interest in Osisko’s mining and exploration assets for C$441.5 million in cash and 95.7 million common shares of Yamana having an aggregate value of C$929.6 million.
Under the Agreement, Yamana will become an equal partner in all of Osisko’s mining and exploration assets. Osisko will continue to operate the Canadian Malartic Mine and all other projects under the guidance of a joint operating committee, and will also maintain its head office in Montreal.
The Agreement will be effected by way of a statutory plan of arrangement that is expected to close by May 30th, 2014, following receipt of all shareholder and court, regulatory and exchange approvals.
Osisko has also entered into binding commitment agreements with CPPIB Credit Investments Inc., a wholly-owned subsidiary of CPP Investment Board, for an increase under its existing credit facility (the Credit Facility) and with La Caisse de dépôt et placement du Québec for the sale of a gold stream (the Gold Stream Agreement) on the Canadian Malartic Mine. The Gold Stream Agreement and the increase in the Credit Facility provide additional funding to Osisko of an aggregate of C$550 million. Together with cash consideration from Yamana, these investments generate approximately C$1 billion in cash to be distributed to Osisko shareholders.
Yamana is being represented by Norton Rose Fulbright Canada LLP with a team comprised of Cathy Singer, Robert Mason, Barry Segal, Adrienne Oliver, Nicole Sigouin and Mary Kelly.