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Gold Fields acquires Osisko Mining, consolidating Canada assets

14 Aug 2024

Gold Fields announced the completion of its takeover deal of Osisko Mining Corporation, a Canadian exploration and development company focused on the Windfall gold project in Québec, Canada. The acquisition involves the purchase of all common shares of Osisko Mining on the Toronto Stock Exchange for a total consideration of approximately $1.57bn, giving Gold Fields 100% ownership and control of the Windfall project, which was previously jointly owned and managed by both companies under a 50/50 joint venture agreement.

Windfall and Urban Barry have great potential

The Windfall project is one of the largest and highest-grade gold deposits in Canada, with an estimated mineral resource of 6.4Moz of gold at an average grade of 9.6g/t.

Windfall is currently in the advanced stages of permitting and feasibility, with construction expected to commence in 2025 and first production in 2027.

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The project is projected to produce approximately 300,000oz of gold annually at a competitive all-in sustaining cost of $577/oz.

Osisko and Gold Fields already procured 24MW of hydroelectric power for the project operations from the Québec Government in 2023.

Cornerstone project

The acquisition aligns with Gold Fields' strategy to invest in “high-quality, long-life assets” in Tier-1 mining jurisdictions, according to Gold Fields CEO Mike Fraser.

He said that the Windfall project has the potential to become “the next long-life cornerstone asset in our portfolio.”

“Such deposits with the scale and quality of Windfall are rare and offer significant value upside for our shareholders and stakeholders,” he added.

The acquisition not only consolidates Gold Fields' ownership of the Windfall project but also eliminates existing financial obligations associated with the previous joint venture, which included a C$70 million earn-in payment and a 2% net smelter return royalty.

The transaction also streamlines decision-making and offers greater flexibility in the development and operation of the project.

Urban Barry

Gold Fields will also gain access to further exploration opportunities in the highly prospective Urban Barry and Quévillon district exploration camps, where Osisko Mining holds a dominant land position of over 4,000km².

Gold Fields acquires Osisko Mining, consolidating Canada assets

Gold Fields plans to continue the aggressive exploration program initiated by Osisko Mining, which has resulted in several high-grade discoveries in the region.

“Gold Fields is the ideal partner to continue the development of the Windfall project and to maximise the value of our extensive exploration portfolio in Québec,” explained Osisko Mining CEO John Burzynski.

He also thanked the Osisko Mining team, shareholders, and stakeholders for their support and contribution to the success of the company.

With the Windfall project under its full control, Gold Fields can leverage its expertise in exploration, development, and underground mining to unlock the full potential of this world-class asset.