CN: Goldcorp makes $463-million deal with New Gold to acquire Chilean copper gold project
VANCOUVER, B.C. - Goldcorp Inc. (TSX:G) says it will to acquire a 70 per cent interest in the El Morro copper-gold project in Chile, currently owned by a subsidiary of Xstrata PLC, through a half-billion-dollar deal with New Gold Inc. (AMEX:NGD).
Goldcorp will advance $463 million to New Gold, which will exercise its right to buy the El Morro stake from Xstrata Copper Chile SA, then sell the 70 per cent stake to Goldcorp.
Upon completion of the transactions, Goldcorp will hold 70 per cent and New Gold 30 per cent of the El Morro project.
Goldcorp will pay New Gold $50 million in cash upon closing of the acquisition and amend certain terms of the El Morros shareholders agreement, including New Gold's capital funding obligations.
El Morro is an advanced stage copper-gold project, 80 kilometres east of Vallenar. It contains proven and probable reserves of 6.7 million ounces of gold and 5.7 billion pounds of copper.
