(Reuters) - Osisko Mining Corp said on Wednesday that Yamana Gold Inc would buy a 50 percent stake in its mining and exploration assets for C$930 million ($843 million), a deal that potentially thwarts a hostile bid from Goldcorp Inc.
The deal would give Latin America-focused Yamana its first major asset in Canada and make the Toronto-based miner an equal partner in the Osisko properties.
Goldcorp's bid to acquire Osisko marks the first major takeover tussle in the Canadian gold industry in more than a year. Deal-making has dried up after many miners wrote down the value of billions of dollars of assets that they purchased at sky-high prices as the bullion price ran up in the last decade.
Both Yamana and Goldcorp are vying for Osisko because of its huge Canadian Malartic gold mine in the province of Quebec - a mine widely viewed within the industry as a solid asset in a relatively stable mining jurisdiction.
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The miners have started 2014 very well indeed on the back of rising gold prices, so the question is; is this the real deal or another head fake? Is the bottom really in? Could there be a final capitulation just ahead of us? Will the summer doldrums take the PMs lower?
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