as to whether the POG and gold shares are going to rise or fall Goldcorp seems to be bullish.
UPDATE 1-Goldcorp holds 13 pct of Osisko after share buy
Monday August 10, 2009 17:30:58 EDT
TORONTO, Aug 10 (Reuters![]()
) - Goldcorp said on Monday it has acquired shares and warrants that will bring its stake in oft-rumored takeover target Osisko Mining to about 13 percent. Goldcorp, which along with Kinross Gold has been mentioned as a possible suitor for Osisko, said it has acquired about 8.5 million common shares and 4.3 share purchase warrants of Osisko, and now beneficially holds or controls 33.8 million shares. Goldcorp said each warrant is exercisable for a share of Osisko for C$5.45 a share until Nov. 17. Osisko closed at C$7.04 on the Toronto Stock Exchange. Osisko is developing what will be one of Canada's largest gold mines in the Quebec town of Malartic. 'It's not surprising that Goldcorp has dipped its toe in the water,' said John Ing, president of Toronto investment dealer Maison Placements. The 6.3 million-ounce project, for which Osisko has been moving an entire neighborhood, is expected to yield 628,000 ounces of gold a year when it begins production in 2011. In a statement, Goldcorp said it had acquired the shares for investment purposes. 'Goldcorp has no present intention to increase its holdings in Osisko although it will evaluate the investment in Osisko and whether to increase or decrease its shareholdings in response to market conditions, the business and prospects of Osisko and other factors,' the company said in a statement. Osisko raised about C$400 million in an equity financing in February and raised another C$75 million through an offering of convertible debt in July. The company's market capitalization is just over C$1.8 billion. ($1=$1.09 Canadian) (Reporting by Cameron French; editing by Peter Galloway) Keywords: OSISKO GOLDCORP/ (cameron.french@thomsonreuters.com; 416-941-8199: Reuters Messaging: cameron.french.reuters.com@reuters.net)
