AXMIN Inc (TSXV: AXM)
AXMIN Inc. (TSXV:AXM) is a Canadian-based exploration and development company with a strong focus on central and West Africa.
Amid soaring gold prices, the drive for mergers and acquisitions in the gold production sector remains strong. On Monday, Johannesburg-based diversified gold producer Gold Fields agreed to acquire Canadian miner Osisko Mining Inc (TSX:OSK) for C$2.16 billion ($1.6 billion) in an all-cash deal. The purchase price is C$4.90 per share, representing a 66.7% premium over the closing price on August 9th, with the total transaction valued at approximately C$2.16 billion.
Following the announcement, Osisko’s share price surged by 63% in Toronto trading on Monday, while Gold Fields saw its shares drop by 5.6%, hitting the lowest point since early July.
Gold Fields operates nine producing mines across Australia, South Africa, Ghana, Chile, and Peru, and holds the Windfall Project in Quebec, Canada. Previously, Gold Fields and Osisko each owned 50% of this project. This acquisition will give Gold Fields full control of the gold mine, with Windfall expected to start production in 2026.
In 2022, Gold Fields proposed a $6.7 billion all-stock acquisition of Canadian miner Yamana Gold, but the bid ultimately failed due to a joint bid from Agnico Eagle and Pan American Silver. A decade ago, Gold Fields sold all its assets in South Africa, retaining only one. In the first quarter of this year, the company’s gold production fell by 18%.
Gold Fields CEO Mike Fraser stated in the announcement that the company’s strategy is to enhance its portfolio by acquiring high-quality, long-life assets like Windfall.
According to Osisko, Windfall is one of Canada’s highest-grade resource-stage gold projects and has a world-class scale. Assuming a cut-off grade of 3.50 g/t gold, the estimated resources at Windfall include: measured mineral resources of 811,000 tonnes at 11.4 g/t gold (297,000 ounces); indicated resources of 10,250,000 tonnes at 11.4 g/t gold (3,754,000 ounces); and inferred resources of 12,287,000 tonnes at 8.4 g/t gold (3,337,000 ounces).
Osisko’s board has unanimously recommended that shareholders vote in favor of the deal.
