Mining
Monday, October 21st, 2024 6:32 pm EDT
Key Points
- Gold Fields Acquires Osisko Mining: Bonterra Resources Inc. congratulated Gold Fields Ltd. on its acquisition of Osisko Mining Inc. for approximately $2.16 billion in an all-cash transaction, with shareholder approval granted on October 17, 2024. The deal is expected to close around October 25, 2024.
- Joint Venture Development: Following the acquisition, Gold Fields will operate the Phoenix joint venture in the Urban-Barry camp, which is near the Windfall gold deposit. Gold Fields can earn a 70% interest in the project by investing $30 million in work expenditures over three years, with at least $10 million committed annually.
- Exploration Progress and Potential: Bonterra’s executive chairman noted the discovery of high-grade mineralization at the Moss target, which is similar to the Windfall-Lynx zone, and expressed optimism about future developments in partnership with Gold Fields. Bonterra holds significant gold exploration assets in Quebec, including several deposits totaling 1.24 million ounces in measured and indicated categories.
Bonterra Resources Inc. is congratulating Gold Fields Ltd., through a 100-per-cent-owned Canadian subsidiary, for the acquisition of Osisko Mining Inc. in an all-cash transaction valued at approximately $2.16-billion on a fully diluted basis.
On Oct. 17, 2024, the shareholders of Osisko Mining overwhelmingly approved the acquisition by Gold Fields through plan of arrangement. The transaction is expected to close on or about Oct. 25, 2024. Upon closing, Gold Fields will assume the role of operator of the Phoenix JV (joint venture), located in the Urban-Barry camp near the Windfall gold deposit. Under the terms of the earn-in and joint venture agreement, Gold Fields can acquire up to a 70-per-cent interest in the project by investing a total of $30-million in work expenditures, with a minimum commitment of $10-million per year over a three-year period. Since the signing of the agreement in November, 2023, Osisko Mining has drilled 60,000 metres and invested over $15-million in the project. This extensive drilling program has led to a significant discovery at the Moss target, revealing high-grade mineralization similar to the Windfall-Lynx zone, which has been confirmed at depth (see release dated Aug. 6, 2024).
Cesar Gonzalez, executive chairman, commented: “The arrival of Gold Fields, a renowned global gold producer, opens a new chapter in the development of our Urban-Barry property and at the Windfall gold project. The recent discovery of Lynx-type mineralization demonstrates the potential for finding new deposits near the future Windfall mine. We look forward to continuing the earn-in and joint venture with our new partner Gold Fields and to the shared success that lies ahead.”
About Bonterra Resources Inc.
Bonterra is a Canadian gold exploration company with a portfolio of advanced exploration assets anchored by a central milling facility in Quebec, Canada. The company’s assets include the Gladiator, Barry, Moroy and Bachelor gold deposits, which collectively hold 1.24 million ounces in measured and indicated categories and 1.78 million ounces in the inferred category.
In November, 2023, the company entered into an earn-in and joint venture agreement with Osisko Mining for the Urban-Barry properties, which include the Gladiator and Barry deposits. In August, 2024, Gold Fields announced the acquisition of Osisko Mining for $2.16-billion. Gold Fields can earn a 70-per-cent interest in the joint venture by incurring $30-million in work expenditures until November, 2026. This strategic transaction highlights Bonterra’s dedication to advancing its exploration assets, marking a significant step toward development.
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