Goldcorp Sells Mine – Analyst Blog

Goldcorp Inc. ( GG ) has entered into an agreement to sell its San Dimas gold-silver mine in Mexico to Mala Noche Resources Corporation, a company engaged in acquiring and developing precious metals resource properties. In 2009, San Dimas produced 113,000 ounces of gold and 5.1 million ounces of silver. In consideration, Goldcorp would receive $500 million, consisting of $275 million in cash and about 30% interest in Mala Noche by way of $175 million shares valued at the offering price of Mala Noche’s proposed equity financing. Goldcorp will also receive a $50 million promissory note payable over five years and bearing interest at a rate of 6% per annum. Goldcorp plans to use the amount so raised to fund its growth projects. Goldcorp has been selling non-core assets recently, including the Escobal silver deposit in Guatemala, which it sold for $505 million to Tahoe Resources Inc., a private company headed by former Goldcorp CEO Kevin McArthur. Amendment of Customer Contract Goldcorp has been selling all the silver produced at the San Dimas mine to Silver Wheaton for approximately $4.00 per ounce. After the sale of the mine, Mala Noche will continue selling silver to Silver Wheaton. Silver Wheaton will receive a minimum of 3.5 million ounces of silver every year and half of any excess production in the first four years after the close of the transaction. In addition, Silver Wheaton will receive an additional 1.5 million ounces per year from Goldcorp. Fifth year onwards, Mala Noche will deliver about 6 million ounces to Silver Wheaton and 50% of any excess. Vancouver-based Goldcorp is a leading gold producer engaged in gold mining and related activities including exploration, extraction, processing and reclamation. Goldcorp has

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Goldcorp Sells Mine – Analyst Blog

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