Gold Fields Ltd announced on Monday, August 12, that it had agreed to acquire Osisko Mining Inc. for C$2.16 billion (approximately $1.57 billion) in a cash transaction designed to enhance the South African gold producer’s footprint in the Americas.
Under the terms of the deal, Johannesburg-based Gold Fields will pay C$4.90 per share for Osisko, representing a 55% premium over the Canadian miner’s closing price on August 9.
The acquisition is expected to facilitate Gold Fields’ full ownership of the Windfall project, which it has been jointly developing with Osisko.
Gold Fields CEO Mike Fraser noted that the acquisition aligns with the company’s strategic goals, as it will enable full integration of the Windfall project. Meanwhile, Osisko’s board has endorsed the transaction, with Chairman and CEO John Burzynski highlighting the premium deal as a testament to the value of the Windfall project.
“This premium transaction represents a strong and near-term outcome for our shareholders and reflects the truly world-class nature of the Windfall Project,” Burzynski said.
Gold Fields, established by Cecil John Rhodes in 1887, has increasingly targeted high-value deposits in Ghana, Australia, and the Americas due to the challenging conditions of gold mining in South Africa’s deep mines.
The acquisition of Osisko’s Quebec-based projects is expected to strengthen Gold Fields’ position in a premier mining jurisdiction and among the largest gold deposits globally.
The transaction will be financed through Gold Fields’ existing cash reserves, undrawn bank facilities, and additional financing from a consortium of lenders.
This acquisition follows Gold Fields’ failed attempt to secure Yamana Gold Inc. for $6.7 billion in 2022, a proposal ultimately thwarted by competing interests.
