TSX: G NYSE: GG
(All amounts in $US unless stated otherwise)
VANCOUVER, Aug. 27,
2015 /CNW/ - GOLDCORP INC. (TSX: G, NYSE: GG) is
pleased to announce it has entered into an agreement to purchase
New Gold Inc.'s ("New Gold") (TSX: NGD, NYSE: NGD) 30% interest in
the El Morro copper-gold project in Chile. Following
the acquisition, Goldcorp will own 100% of the project. Under
the terms of the agreement, Goldcorp will pay New Gold $90 million in cash at closing and a 4% gold
stream on future gold production from El Morro. New Gold will
make ongoing payments of $400 per
ounce of gold delivered under the contract, subject to a 1% per
annum adjustment (compounded annually, commencing on the first
anniversary of the agreement) once 217,000 ounces have been
delivered. At December 31,
2014, El Morro had proven and probable gold reserves of 8.92
million ounces (100% basis)1.
Goldcorp also announced today that it has reached
an agreement with Teck Resources Limited ("Teck") (TSX: TCK.A &
TCK.B, NYSE: TCK) to combine their respective interests in the El
Morro (including the 30% interest to be acquired from New Gold as
described above) and Relincho projects in Chile into a 50/50 joint venture.
"This transaction allows us to consolidate the
ownership of El Morro and work with Teck to jointly develop the
Relincho and El Morro deposits in a way that is expected to deliver
significant synergies to our respective stakeholders and
shareholders," said Chuck Jeannes,
Goldcorp's President and CEO.
Completion of the transactions contemplated by
this press release are subject to customary closing conditions and
are anticipated to close in the fourth quarter of 2015.
___________________________
1 Estimated in accordance with CIM Definition Standards
and National Instrument 43-101 as required by Canadian securities
regulatory authorities. For a breakdown and additional details on
tonnes, grade and ounces, see Goldcorp's 2014 Annual Information
Form.
About Goldcorp
Goldcorp is a leading gold producer focused on
responsible mining practices with safe, low-cost production
throughout the Americas. A portfolio of long-lived,
high-quality assets positions Goldcorp to deliver long-term
value.
Cautionary Note Regarding Forward Looking Statements
This press release contains "forward-looking
statements", within the meaning of the United States Private
Securities Litigation Reform Act of 1995 Section 21E of the United
States Securities Exchange Act of 1934, as amended, Section 27A of
the United States Securities Act of 1933, as amended and applicable
Canadian securities legislation, concerning the business,
operations and financial performance and condition of Goldcorp Inc.
("Goldcorp"). Forward-looking statements include, but are not
limited to, statements with respect to the ability of the parties
to satisfy the conditions of and complete the transactions with
each of New Gold and Teck (the "transactions"), the future price of
gold, silver, copper, lead and zinc, the estimation of mineral
reserves and resources, the realization of mineral reserve
estimates, the timing and amount of estimated future production,
costs of production, capital expenditures, costs and timing of the
development of new deposits, success of exploration activities,
permitting time lines, hedging practices, currency exchange rate
fluctuations, requirements for additional capital, government
regulation of mining operations, environmental risks, unanticipated
reclamation expenses, timing and possible outcome of pending
litigation, title disputes or claims and limitations on insurance
coverage. Generally, these forward-looking statements can be
identified by the use of forward-looking terminology such as
"plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", "believes" or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved" or the negative
connotation thereof.
Forward-looking statements are made based upon
certain assumptions and other important factors that, if untrue,
could cause the actual results, performances or achievements of
Goldcorp, including in respect of the transactions, to be
materially different from future results, performances or
achievements expressed or implied by such statements. Such
statements and information are based on numerous assumptions
regarding present and future business strategies and the
environment in which Goldcorp will operate in the future, including
the price of gold, anticipated costs and ability to achieve goals.
In respect of the forward-looking statement concerning the
anticipated timing of closing of the transactions, Goldcorp has
provided it in reliance on certain assumptions that is believed
reasonable at this time, including assumptions as to the conditions
of closing of the transactions being satisfied in a timely manner.
Certain important factors that could cause actual results,
performances or achievements to differ materially from those in the
forward-looking statements include, among others, the transactions
not being completed as planned, gold price volatility,
discrepancies between actual and estimated production, mineral
reserves and resources and metallurgical recoveries, mining
operational and development risks, litigation risks, regulatory
restrictions (including environmental regulatory restrictions and
liability), activities by governmental authorities (including
changes in taxation), currency fluctuations, the speculative nature
of gold exploration, the global economic climate, dilution, share
price volatility, competition, loss of key employees, additional
funding requirements and defective title to mineral claims or
property. Although Goldcorp has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended.
Forward-looking statements are subject to known
and unknown risks, uncertainties and other important factors that
may cause the actual results, level of activity, performance or
achievements of Goldcorp to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to: the risk that the transactions will not be
completed as planned, risks related to the integration of
acquisitions; risks related to international operations, including
economic and political instability in foreign jurisdictions in
which Goldcorp operates; risks related to current global financial
conditions; risks related to joint venture operations; actual
results of current exploration activities; environmental risks;
future prices of gold, silver, copper, lead and zinc; possible
variations in ore reserves, grade or recovery rates; mine
development and operating risks; accidents, labour disputes and
other risks of the mining industry; delays in obtaining
governmental approvals or financing or in the completion of
development or construction activities; risks related to
indebtedness and the service of such indebtedness, as well as those
factors discussed in the section entitled "Description of the
Business – Risk Factors" in Goldcorp's annual information form for
the year ended December 31, 2014
available at www.sedar.com and the United States Securities and
Exchange Commission at www.sec.gov. Although Goldcorp has
attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. Forward-looking statements are
made as of the date hereof and accordingly are subject to change
after such date. Except as otherwise indicated by Goldcorp,
these statements do not reflect the potential impact of any
non-recurring or other special items or of any dispositions,
monetizations, mergers, acquisitions, other business combinations
or other transactions that may be announced or that may occur after
the date hereof. Forward-looking statements are provided for
the purpose of providing information about management's current
expectations and plans and allowing investors and others to get a
better understanding of our operating environment. Goldcorp does
not undertake to update any forward-looking statements that are
included or incorporated by reference in this document, except in
accordance with applicable securities laws.
SOURCE Goldcorp Inc.