Goldcorp acquires Kaminak Gold for $406m

Goldcorp acquires Kaminak Gold for $406m

Goldcorp Inc. (TSX:G) has announced the acquisition of Kaminak Gold Corporation (TSX:KAM) by way of a plan arrangement of Kaminak’s outstanding shares for US$406 million.

Kaminak will also give its Coffee gold project to Goldcorp, a hydrothermal gold deposit located south of Dawson City, Yukon in Canada.

The project’s key asset has total indicated gold mineral resources of 3 million ounces. It is a high-grade, open pit mining project based in a top tier mining jurisdiction.

“This acquisition is consistent with our strategy of partnering with the junior exploration companies to identify and develop mining districts with significant exploration potential that is expected to know our net asset value per share,” said David Garofalo, Goldcorp’s president and CEO. “Coffee is located within a politically stable jurisdiction and provides us with an opportunity to add high quality ounces to our development pipeline, at low all-in sustaining costs.

The agreement has been unanimously approved by both boards of directors.

@RGNOnline