Goldcorp Announces Due Diligence Underway At Osisko; Extends Offer For Osisko

(RTTNews) - Goldcorp Inc. (GG, G.TO) said Thursday that it is continuing its due diligence process at Canadian gold miner Osisko Mining Corp.'s (OSK.TO), Malartic mine in Quebec.

Goldcorp said that, following a full analysis of due diligence findings, it will consider its position and apprise its shareholders as to next steps related to its existing offer to acquire Osisko.

"Our due diligence team is making progress, and we look forward to completing a full analysis of the team's findings in due course. In the meantime we will complete our analysis of the alternate scheme proposed between Osisko and a number of other parties," said Chuck Jeannes, Goldcorp President and Chief Executive Officer.

Goldcorp also announced that it has extended its offer to acquire all of the outstanding common shares of Osisko until 5:00 p.m. EDT on April 15, 2014. Osisko shareholders who tender to the offer will be entitled to receive 0.146 of a Goldcorp common share plus C$2.26 in cash for each Osisko common share. All other conditions remain unchanged.

On Wednesday, Osisko Mining said it agreed to sell 50 percent stake in its mining and exploration assets to bigger peer Yamana Gold Inc. (AUY, YRI.TO) for C$929.6 million in stock and cash deal. The deal is to thwart the hostile takeover attempt by Goldcorp Inc.

Yamana said it will pay C$441.5 million in cash and 95.7 million in shares bringing the total value to C$929.6 million. The deal values Osisko at C$7.60 a share, representing 10 percent premium over yesterday's closing price and 22 percent premium over Goldcorp's hostile bid currently valued at C$6.21 a share.

Under the deal, each outstanding share of Osisko will be exchanged for C$2.194 in cash, 0.2119 of a Yamana share and a new share of Osisko.

In mid-January, Goldcorp made an hostile offer to buy Osisko in a cash and stock deal for about C$2.6 billion, or $2.38 billion. Goldcorp's cash-and-stock bid for Osisko currently has a value of C$6.21 a share.

On January 20, Osisko rejected the hostile take-over bid from Goldcorp, citing it to be financially inadequate and not in the best interests of Osisko.