10:31 AM EDT, 08/12/2024 (MT Newswires) -- Osisko Mining ( OBNNF ) was at last look up more than 60% at $4.79 -- and has touched a fresh 52 week high of $4.80 -- after it agreed Monday to be bought by joint venture partner Gold Fields for $4.90 per share in an all-cash transaction valued at about $2.16 billion on a fully diluted basis.

The Globe and Mail newspaper noted Gold Fields in 2022 attempted to acquire Yamana Gold Inc. for US$6.7-billion but it was outfoxed by Agnico Eagle Mines Ltd. ( AEM ) and Pan American Silver Corp. ( PAAS ) , which collectively outbid it. The failure of the Yamana deal led to Gold Fields chief executive Chris Griffith stepping down, the Globe report said.

According to Monday's statement, the price Gold Fields is paying for Osisko is a premium of approximately 55% compared with the 20-day volume weighted average price per share on the Toronto Stock Exchange for the period ending August 9, the last trading day prior to the deal announcement. Gold Fields will make the acquisition through a 100% owned Canadian subsidiary.

Osisko's board is unanimously recommending shareholders vote in favor of the deal, which is expected to be in the fourth quarter.

"This premium transaction represents a strong and near-term outcome for our shareholders and is reflective of the truly world class nature of the Windfall Project," Osisko's Chairman and Chief Executive Officer John Burzynski said in the statement said. "In the span of nine years, we've transformed Windfall into one of the largest and highest-grade gold development projects globally."

"We are pleased to consolidate the remaining 50% interest of the advanced-stage Windfall Project and its highly prospective exploration camp," said Gold Fields Chief Executive Officer Mike Fraser. " Over the past two years, beginning with our initial due diligence in 2022 and throughout our joint ownership of the Project, since May 2023 with Osisko, we have developed a strong understanding of Windfall and its potential, and view it as the next long-life cornerstone asset in our portfolio."

On impact, National Bank cited "attractive terms" for OSK shareholders: all cash, sizable premium, removes final permitting and construction risk and is priced at a P/NAV comparable to other developed and derisked Canadian producers (e.g., Wesdome WDO.TO). National said the deal shows continued international appetite for Canadian assets, provides favourable read through to remaining single-asset developers Artermis Gold (ARTG.V), Osisko Development ( ODV ) , O3 Mining ( OIIIF ) , i-80 Gold ( IAUX ) , Snowline Gold ( SNWGF ) and New Found Gold ( NFGC ) , and a "valuation goal post" for other potential Canadian asset M&A opportunities.

National Bank is Maintaining Outperform and $5.00 target. "Next up," it said, "ongoing exploration, progress on the permitting, exploration, development and bulk sample work." National's thesis is supported by exploration upside and district potential in a favourable jurisdiction, with elevated grades and a long mine life, tempered by inflationary pressures on capex. It noted OSK was trading at P/NAV 0.52x (ODV 0.25x, ARTG 0.73x.) National's target is based on 1.0x NAVPS.

Price: 4.80, Change: +1.86, Percent Change: +63.27