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Updated: Mon, 10 Mar 2014 17:39:56 GMT | By The Canadian Press, thecanadianpress.com

Goldcorp extends Osisko bid to March 21

VANCOUVER - Goldcorp Inc. (TSX:G) it extending its takeover offer for Osisko Mining Corp. (TSX:OSK) until March 21.


VANCOUVER - Goldcorp Inc. (TSX:G) it extending its takeover offer for Osisko Mining Corp. (TSX:OSK) until March 21.

Under terms of the offer, Osisko shareholders are entitled to receive 0.146 of a Goldcorp common share plus $2.26 in cash for each Osisko common share.

Earlier this month, litigation between the two companies was resolved when, among other conditions, Goldcorp. agreed not to take up and pay for any Osisko shares under its offer until April 15.

Other terms of the settlement in the hostile takeover bid by the senior gold miner included an agreement by Osisko to waive its shareholder rights plan by April 14.

It also agreed to provide Goldcorp with access to due diligence materials starting April 1, or earlier, if Osisko signs a deal with another bidder, a process which it is actively pursuing.

"Given the robustness of our process to pursue value maximizing alternatives, the extension to April 15, 2014, provides a meaningful extension to the anticipated time to complete this work,'' Osisko president and chief executive Sean Roosen said at the time.

Osisko has urged its shareholders to reject the Goldcorp offer and called it inadequate and opportunistic.

The price of gold and share prices for many gold producers have risen in recent weeks but Osisko shares have traded well above the implied value of the Goldcorp offer since the bid was first announced.

Osisko's shares closed down five cents at $7.43 on Monday, while Goldcorp shares fell 33 cents to $29.64, making the current implied value of the offer about $6.59 per share.

Osisko's main asset is the Canadian Malartic gold mine in northern Quebec where it has been ramping up operations since its first commercial production in May 2011.

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