Top Stories This Week: Gold Price Hits New Record of US$2,500, Mining M&A Continues

Bullet briefing — Gold Fields to buy Osisko, Escondida workers on strike

Gold Fields to buy Osisko Mining

M&A was in the air again this week, with major South African miner Gold Fields (NYSE:GFI,JSE:GFI) announcing plans to acquire Osisko Mining (TSX:OSK,OTC Pink:OBNNF) for C$2.16 billion.

Through the all-cash deal, Gold Fields will gain full control of the Quebec-based Windfall gold project, which it currently jointly and equally owns and manages with Osisko. The companies have been working together on the asset since 2023, and Gold Fields said it sees the property as the next cornerstone in its portfolio.

"Throughout our joint ownership of the project since May 2023, and the due diligence that preceded it, we have developed a strong understanding of Windfall and its potential and view it as the next long-life cornerstone asset in our portfolio" — Mike Fraser, Gold Fields

If approved, the companies expect to close the transaction in Q4 of this year.

Victoria Gold placed into receivership

Beleaguered Victoria Gold (TSXV:VGCX,OTC Pink:VITFF) was placed into receivership by the Ontario Superior Court of Justice on August 14 after it reviewed an application from the Yukon government.

The company has been engaged in cleanup efforts at its Eagle gold mine since late June, when the collapse of the heap leach pad at the site unleashed cyanide-laced rocks into the environment. While Victoria Gold maintains that it has "essentially achieved" all the directives issued by the Yukon government, legislators aren't satisfied with its efforts. The local First Nation is also disappointed with Victoria Gold's work so far.

"We have essentially achieved all of the directives that they have issued. We’ve just, in some cases, done it in a different way" — John McConnell, Victoria Gold

With the receivership in place, PwC is now managing Victoria Gold. Shares of the company have been halted from trading on the TSX after falling more than 90 percent.

Copper gets boost from Escondida strike

Copper prices got a boost this week as workers at BHP's (ASX:BHP,NYSE:BHP,LSE:BHP) Escondida mine in Chile went on strike. The strike began on August 13 as contract negotiations between the company and a union fell apart.

The union is looking for a larger share of profits, and has accused BHP of engaging in anti-union practices by replacing striking workers who have walked out. BHP has said this was necessary to maintain basic operations at the Escondida site. As of Thursday (August 15), the parties hadn't been able to return to the table to restart negotiations.

Escondida is the world's largest copper mine, responsible for close to 5 percent of global supply in 2023. Strikes in previous years have impacted BHP's ability to supply the metal.