Johannesburg-based gold mining company Gold Fields is acquiring Canada's Osisko Mining for $1.57 billion, according to a press release from the South African mining company.
If approved by Osisko Mining shareholders, the deal will give it full control of the Windfall gold project, one of Canada's largest. Gold Fields and Osisko Mining currently have equal stakes in the project.
"Once completed, the transaction will consolidate Gold Fields’ 50% partnership stake into full ownership and control of the Windfall Project and its entire exploration district and will eliminate our existing obligations of a C$300m [$218.6 million] deferred cash payment and C$75m [$54.6 million] exploration obligation, which were part of the May 2023 Windfall JV transaction with Osisko Mining," the statement read.
The statement emphasized that Osisko's projects in Quebec would enable Gold Fields to "firmly solidify" its presence in one of Canada's largest gold deposits.
Gold Fields will pay C$4.90 per Osisko Mining share, a 67% premium to the closing price on Friday.
The boards of both companies have approved the deal, and the parties expect to close it in the fourth quarter of this year.
Osisko Mining estimates that the Windfall gold mine will produce approximately 300,000 ounces per year at an all-in cash cost of $758 per ounce.