Osisko says Canadian Malartic production hits record pace in January

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MONTREAL – Osisko Mining Corp. (TSX:OSK), which is fighting a hostile takeover from Goldcorp Inc. (TSX:G), says its flagship Canadian Malartic mine produced 50,111 ounces gold in January, a record for the project.

The company says the production was achieved despite mill downtime and the unusually cold weather that hampered throughput levels at the mill.

The record month follows a record quarter for the project, which produced 137,321 ounces of gold in the final three months of 2013.

Canadian Malartic, which started commercial production in May 2011, has been ramping up production and produced 475,277 ounces last year, the best year so far for the mine.

Osisko has rejected a $2.6-billion Goldcorp offer for the company as “opportunistic and financial inadequate.”

In formally turning down the Goldcorp bid last month, Osisko said it was working with its advisers, including talks with third-parties regarding “strategic alternatives.”

Osisko shares have traded well above Goldcorp’s cash-and-stock bid, which had an implied value of about $5.95 when it was made, and analysts have suggested that Goldcorp will have to raise its offer if it wants to close the deal.

Osisko shares were down two cents at $6.51 in trading Thursday on the Toronto Stock Exchange.

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