Proactive Investors – Fields Limited (ADR) (NYSE:GFI) has announced its acquisition of Osisko Mining (TSX:) (:OR.WT) in a substantial $2.16 billion (US$1.6 billion) deal, underscoring its strategy to expand amid surging gold prices.
The South African mining giant will acquire Osisko’s Windfall gold project, paying $4.90 per share—a 66.7% premium over Osisko’s closing price last Friday, as reported by Bloomberg.
Gold Fields will now hold full ownership of the Windfall project. Previously a 50:50 joint venture, Windfall represents a key asset in Gold Fields’ broader strategy to diversify its operations beyond South Africa. Over the past decade, the company has strategically reduced its South African assets, focusing on acquiring high-quality, long-life projects like Windfall.
Osisko’s board has unanimously endorsed the deal, Bloomberg reported.
The timing of the acquisition, amidst near-record gold prices, highlights the growing interest in premium gold assets. The deal suggests a robust valuation for gold projects in safe jurisdictions, reflecting a broader trend of increased deal-making in the sector.
The acquisition values Osisko’s Windfall at approximately $1.8 billion in net asset value (NAV) at current metal prices, with Gold Fields paying about $1.6 billion for its stake. This significant premium indicates Gold Fields’ belief in the undervaluation of high-quality gold assets, potentially signaling increased opportunities for other junior miners in the market.
