Gold Fields to Acquire Osisko Mining for $1.57 Billion

Published: August 13, 2024 |

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Gold Fields Limited has entered into a definitive agreement with Osisko Mining to acquire all the common shares of Osisko Mining.

This transaction, if approved by Osisko Mining shareholders, will give Gold Fields full control of the Windfall Project in Québec, Canada. Currently, the project is jointly and equally owned and managed by Gold Fields and Osisko Mining.

“We are pleased to consolidate the remaining 50 percent 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,” said Gold Fields CEO Mike Fraser.

“Throughout our joint ownership of the project since May 2023, and the due diligence that preceded it, we have developed a strong understanding of Windfall and its potential and view it as the next long-life cornerstone asset in our portfolio,” added Fraser.

Once completed, the transaction will consolidate Gold Fields’ 50 percent partnership stake into full ownership and control of the Windfall Project and its entire exploration district.

The transaction will be subject to the approval of at least two-thirds of the votes cast by Osisko Mining shareholders, as well as a simple majority of the votes cast by Osisko Mining shareholders excluding certain related parties, at a shareholder meeting expected to be held in October 2024. Both companies’ boards of directors have approved and are supportive of the transaction, with Osisko Mining directors recommending that shareholders vote in favor of the transaction.

The transaction will be implemented by way of a Canadian plan of arrangement. If approved by Osisko Mining shareholders and once all regulatory and court approvals have been received. The transaction is expected to be finalized in Q4 2024.

“We would like to thank the Osisko Mining team for their support since the announcement of our partnership in 2023. We look forward to continue working closely with the host Cree First Nation of Waswanipi, other local communities, the Québec Government and Windfall employees and business partners as we advance this project, which I strongly believe will create shared, enduring value for Gold Fields and our people, community, business and government partners,” said Mike Fraser.

“We are pleased to be handing over the reins to Gold Fields, a partner whose expertise and vision align with the solid foundations we have established over the past years. Throughout our collaboration, Gold Fields has demonstrated a commitment not only to advancing a promising project in a key sector of Québec’s economy, but also to establish strong and enduring relationships within the local community,” said Osisko Mining CEO John Burzynski.

“As they assume leadership, we are confident that Gold Fields will continue to build upon this momentum, furthering both the project and the socio-economic development of the region. Their understanding of the industry, coupled with their dedication to sustainable growth, positions them to create lasting value that will benefit all stakeholders and Québec’s economy for years to come,” added Burzynski.

The transaction firmly delivers on Pillar 3 of Gold Fields’ strategy to grow the value and quality of its portfolio of assets. It consolidates the company’s interest in a world-class, advanced-stage project that Gold Fields understands well. Situated in Québec, Canada, Gold Fields will firmly solidify its presence in a tier-1 mining jurisdiction that enhances the jurisdictional quality of its global footprint.

Windfall is among the largest gold deposits in Canada, and a top ten gold deposit globally by head grade. Full ownership of Windfall enables Gold Fields to streamline decision-making and increase flexibility with respect to the development and subsequent operation of Windfall.

Development of Windfall is well advanced. Before the May 2023 Windfall JV transaction, Osisko Mining had invested more than $583 million on the project. Since then, Gold Fields and Osisko Mining have each spent a further $115 million, bringing total investment to date to more than $720 million.

Environmental permitting for full scale construction of the project is underway, with final approval expected in 2025. Discussions have continued towards the execution of an impact and benefit agreement with the Cree First Nation of Waswanipi and the Cree Nation Government, as part of the overall project development process.

The project is fully powered by hydro-electricity with a power supply already allocated from Hydro Québec, reducing energy costs and greenhouse gas emissions. The hydro-electric power line was built and is owned and operated by the Waswanipi Cree First Nation.

Gold Fields Limited operates as a gold producer with reserves and resources in Australia, South Africa, Ghana, Chile and Peru and one project in Canada. It also explores for copper and silver deposits. The company was founded in 1887 and is based in Sandton, South Africa.

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