South African gold producer Gold Fields has reached an agreement with long-time mining partner Osisko Mining to consolidate full ownership of the Windfall project.
Under the agreement, Gold Fields is to acquire all Osisko Mining common shares on the Toronto Stock Exchange for C$4.90 per share in an all-cash transaction.
The deal, valued at $1.57bn (C$2.16bn), will give Gold Fields full control of the Windfall project in Quebec, Canada.
The project is currently equally owned and managed by both companies. The deal has been approved by the Gold Fields’ and Osisko Mining’s boards of directors.
Osisko has also recommended its shareholders vote in favour of the agreement. It is expected to be finalised by the fourth quarter of 2024, subject to court approvals.
The Windfall project is one of the largest gold deposits in Canada, registering as one of the top ten gold deposits globally.
The site is expected to produce 300,000 ounces of gold a year, according to Osisko Mining’s feasibility study from December 2022, at $758/oz. The project has an expected mine-life of ten years.
Gold Fields CEO Mike Fraser said: “We are pleased to consolidate the remaining 50% interest in Windfall and its highly prospective exploration camp. Deposits with the scale and quality of Windfall, with a highly prospective exploration camp on top of that, are extremely rare, let alone in a world-class jurisdiction like Québec, Canada.
The acquisition will increase the company’s presence in the Americas after already having mines in operation in Chile and Peru.
