The takeover bid marks a rare move in the mining industry over the past year, as companies have focused largely on cutting costs and preserving cash amid a deep slump in gold prices and gold miners’ shares. The offer signals industry valuations have fallen to a level where it makes sense for some mining companies to make acquisitions after they spent the past two years writing down assets bought during the commodity boom.

Goldcorp’s chief executive Chuck Jeannes said the Osisko transaction is not about Goldcorp getting bigger.

“Our strategy has never been about size,” Mr. Jeannes said on a conference call. He said Goldcorp has a history of being disciplined and suggested that he would not get into a bidding war for Osisko.

“At this time I am not willing to go up higher,” he said in an interview.

In Montreal to announce the deal and meet with Goldcorp investors, Mr. Jeannes said his shareholders liked the offer and pointed to Goldcorp’s relatively low dip in share price. Goldcorp fell 1 per cent to $25.04 after the deal was announced.

“Our shareholders understand the deal and think it makes sense,” Mr. Jeannes said.

Vancouver-based Goldcorp is offering $2.26 in cash plus 0.146 Goldcorp share for every Osisko share. The offer is 60 per cent lower than Osisko’s share price of $15.95 in 2010 and the premium is lower than the 30 per cent-plus premiums offered when commodity prices were soaring.

Quebec-based Osisko owns the Malartic gold mine in Quebec, a coveted industry asset.

Cowen Securities analyst Adam Graf called it “very attractive.” Dundee Capital Markets analyst Joseph Fazzini said Malartic is a world-class operation and should command a higher premium.

“Goldcorp is trying to be opportunistic but such a low offer opens up the doors for one or more parties to get involved. Given that we think Goldcorp wants the asset, we wouldn’t be surprised to see them sweeten their bid over time,” Mr. Fazzini said.

But with gold prices down nearly 30 per cent over the past year and companies trying to sell their unprofitable mines, it is unclear whether a counter-bid will emerge for Osisko. (If the Goldcorp deal closes, it will represent the biggest deal in the Canadian mining sector in more than a year.)

Malartic started commercial production in May, 2011, and is expected to produce 500,000 to 600,000 ounces of gold per year over 16 years. The mine has reserves of 10.1 million ounces of gold, making it one of the largest precious metal mines in Canada today.

Goldcorp said its expertise with open pit mines will help improve Malartic’s operations. Goldcorp already has a gold project called Éléonore in Quebec, which is slated to start production later this year.

Goldcorp’s interest in Osisko stems back to 2008 when Goldcorp bought a small stake in the Quebec-based miner.

Goldcorp eventually grew its position in the company to 10.1 per cent but then sold its stake early in 2011 when Osisko was trading at nearly $14 a share. Mr. Jeannes said his company no longer owns Osisko shares.

Mr. Jeannes said Goldcorp had a lot of interaction with Osisko late last summer and into the fall but that those discussions stopped late in 2013.

The company’s formal bid will be filed on Tuesday and will require approval from Osisko shareholders representing more than two-thirds of Osisko’s stock. Goldcorp said its offer is open until Feb. 19, unless extended or withdrawn. The deal does not require approval from Goldcorp shareholders.

Calls to Osisko were not returned.

A $1.25-billion non-revolving credit facility has been secured with Bank of Nova Scotia, in addition to about $600-million of cash on hand and an undrawn $2-billion credit facility, which is expected to fund the cash portion the offer.

The last time Goldcorp made an acquisition was in 2010, when it bought Andean Resources Limited.