Goldcorp Offers $2.4B for Osisko Mining; US Silver Increases 3.2%
Goldcorp Inc has “launched an unsolicited cash-and-stock bid to acquire smaller rival Osisko Mining Corp for C$2.6 billion ($2.4 billion) on Monday, in a move to gain control of Osisko’s Malartic gold mine in Quebec,” reports Reuters.
“The bid is the Canadian gold sector’s first major attempt at a merger and acquisition deal in nearly a year. Miners stung by a 25 percent drop in the price of gold over the last 12 months have focused on cutting costs and slowing down work on growth projects.”
“The acquisition of the large, low-grade Malartic deposit would boost Goldcorp’s proven and probable reserves by some 10 million ounces, but it also carries its own set of perils.”
“‘Given the low grade of the reserves, the Osisko assets will be relatively susceptible to any further weakness in the gold price, though the Canadian dollar will help protect the domestic mining industry,’ JPMorgan analyst John Bridges said in a note to clients.”
In metal price news for precious metals…
On Monday, January 13, the day’s biggest mover was US silver, which saw a 3.2 percent increase. Following a two-day drop, the price of Chinese silver increased by 3.0 percent. The price of Indian silver increased 1.7 percent. The price of Japanese silver rose 1.1 percent after a two-day drop.
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The price of US gold bullion finished the market day up 1.7 percent per ounce. Chinese gold bullion prices rose 1.2 percent. Japanese gold bullion gained 0.9 percent to finish. Indian gold bullion fell 0.3 percent on Monday.
After a 1.7 percent increase, Chinese platinum bar finished the day. After a 1.3 percent increase, the price of US platinum bar finished the day. Japanese platinum bar prices inched up 0.4 percent.
Up 1.3 percent since on Monday, the price of Japanese palladium bar reached a 30-day high. The price of US palladium bar increased 1.0 percent. The price of Chinese palladium bar rose by 0.6 percent after a three-day flat streak.