Gold Fields Ltd has announced its agreement to acquire Osisko Mining for C$2.16 billion (approximately $1.57 billion). The Johannesburg-based gold producer will pay C$4.90 per share, representing a 55% premium over Osisko’s trading price as of August 9. This acquisition is aimed at strengthening Gold Fields’ presence in the Americas, where it already operates mines in Chile and Peru.
CEO Mike Fraser noted that the cash offer enabled a swift transaction and avoided share dilution, especially in a competitive landscape where rivals might have pursued share-based offers at higher prices. Following the announcement, Gold Fields’ shares fell by 3.16%.
This acquisition comes after a failed attempt by Gold Fields to acquire Yamana Gold in 2022, which was thwarted by a competing bid from Agnico Eagle and Pan American Silver. Gold Fields has been shifting its focus to more lucrative gold deposits in Ghana, Australia, and the Americas due to the challenges of mining in South Africa.
The deal will enhance Gold Fields’ control over the Windfall Project in Quebec, which is expected to start production in 2026. Osisko has endorsed the deal, believing that Gold Fields is well-positioned to bring the Windfall project to fruition. The acquisition will be financed through Gold Fields’ cash reserves, undrawn bank facilities, and additional financing from lenders.
Fraser also mentioned that Gold Fields might consider divesting assets like Damang in Ghana and Cerro Corona in Peru, which are nearing the end of their commercially viable ore.