Osisko Mining Inc. agreed to fully acquire Beaufield Resources Inc., which will help in exploring and developing the Windfall Lake gold project in Quebec.
Under the agreement terms, Beaufield shareholders will receive 0.0482 Osisko share for each Beaufield share. That represents an offer price of 8.2 Canadian cents per Beaufield share, which is based on Osisko's closing price as of Aug. 14 and a premium of approximately 54% based on a 20-day volume weighted average price of the company's common shares.
A preliminary economic assessment on Windfall Lake pegged an after-tax net present value of C$413.2 million with a 32.7% internal rate of return and a 3.9-year payback period.
Osisko recently raised the possibility of extending a gold discovery with a second deep drillhole at 3.4 meters grading 22.4 g/t of gold about 1,900 meters below surface
"By joining Osisko in our large scale exploration and development program at Windfall, Beaufield shareholders have the opportunity to capitalize on the strong premium offered today and to benefit from the future growth of our project," Osisko President and CEO John Burzynski said in an Aug. 14 release.