Osisko CEO Sees ‘Clear’ Case for Continuing on Standalone Basis

Feb 20, 2014 12:01 am ET

Feb. 20 (Bloomberg) -- Osisko Mining Corp., the miner looking at alternatives to a C$2.88 billion ($2.6 billion) hostile offer from Goldcorp Inc., said there’s a “clear” argument for remaining independent.

Goldcorp’s Jan. 13 cash-and-stock offer seeks to gain control of Osisko’s Canadian Malartic mine in Quebec. The Montreal-based gold miner has “a lot of options on the table,” said Chief Executive Officer Sean Roosen.

“We believe very much in a standalone situation at this point in time,” Roosen said yesterday in a phone interview. “This is a brand-new mine that we just commissioned; it just had its best month ever and the month before that was the best month ever.”

Goldcorp has offered 0.146 of a share plus C$2.26 in cash for each Osisko share. Osisko has rejected the bid as too low and filed a lawsuit to stop it. Goldcorp agreed earlier this month not to acquire any Osisko shares through the process until there is a judgment in the Quebec court case.

“The value case for continuing on a standalone basis is pretty clear and concise,” Roosen said. “That said, shareholders have their own individual motivations and reasons and we’ll manage the company according to the will of the shareholders.”

Roosen, who said the company is undergoing a “complete” review process, declined to provide details on what options his company is considering.

--Editors: Steven Frank, Andrew Hobbs