Jan. 30, 2014
(TSX: G, NYSE: GG)
today responded to assertions and claims made by Osisko Mining Corporation ("Osisko") in its Directors' Circular and legal proceedings, both filed on
, concerning Goldcorp's offer to acquire the outstanding shares of Osisko.
Following a careful review of Osisko's Directors' Circular and other public disclosures made by Osisko, there is no new material information concerning Osisko in these materials that was not already publicly known and inherent in its share price prior to Goldcorp's premium offer. No new information has been presented that would change Goldcorp's view that its offer is full and fair. Goldcorp's offer represents a 28% premium to the average closing price of Osisko's shares in the 20 days prior to the bid announcement on
January 13, 2014
; this premium is in addition to the substantial increase in Osisko's share price which began in the weeks leading up to Goldcorp's bid.
"At the time we made public our intention to launch an offer for Osisko, we laid out several compelling reasons why the combination of Goldcorp and Osisko would generate significant value for the shareholders of both companies, and those reasons continue to be fully supported by the facts," said
, Goldcorp President and Chief Executive Officer. "Goldcorp's offer reflects the current market environment for gold and gold equities and provides a strong premium based on any reasonable valuation metric. We have seen fundamental changes take place in the gold market and the gold mining industry in recent years. Successful gold companies today must be financially disciplined, and make investments that provide strong rates of return to investors as opposed to overpaying for assets. Valuations have changed in connection with this fundamental market shift and we believe we have made a full and fair premium offer to Osisko shareholders. Osisko has communicated its intention to explore value-maximizing alternatives but without new information their only strategy appears to be to wait and hope for an improved valuation. Goldcorp believes that the most attractive alternative is this proposed business combination and we continue to welcome the opportunity to discuss this further with Osisko's management, board and shareholders.
"We have met and discussed our offer with a significant number of Osisko's shareholders and have received strong support for this business combination," added Jeannes. "In addition to the immediate premium, they are excited at the prospect of further value creation available to them as shareholders of Goldcorp given our 50% growth profile over the next two years, our portfolio of low-cost operations which mitigates single-asset risks, and our strong balance sheet able to withstand any conceivable downturns in the gold market."