(All Amounts in $US)
VANCOUVER, Feb. 8, 2017 /CNW/ - GOLDCORP INC. (TSX: G,
NYSE: GG) is pleased to announce that the Company has entered
into a binding agreement with New Gold Inc. ("New Gold") (TSX: NGD,
NYSE: NGD) pursuant to which it has agreed to purchase New Gold's
4% gold stream on the El Morro deposit for cash consideration of
$65 million. The El Morro
deposit is part of NuevaUnión, a 50/50 joint venture with Teck
Resources that combines the Relincho and El Morro
deposits.
"The purchase of the stream from New Gold is consistent with our
strategy of optimizing our portfolio to drive increasing net asset
value per share," said David
Garofalo, President and Chief Executive Officer. "El
Morro is a world-class deposit, located in one of the best mining
jurisdictions in the Americas. This stream unlocks further
upside potential for our shareholders over the long-term.
NuevaUnión is a unique project combining the expertise of two
large-scale mining companies to jointly develop what is expected to
be a low-cost, long-life asset. It is also working to set a
standard for community engagement, environmental responsibility and
value creation."
About Goldcorp
Goldcorp is a senior gold producer focused on responsible mining
practices with safe, low-cost production from a high-quality
portfolio of mines.
Cautionary Note Regarding Forward Looking
Statements
This press release contains "forward-looking statements", within
the meaning of Section 27A of the United States Securities Act of
1933, as amended, Section 21E of the United States Exchange Act of
1934, as amended, or the United States Private Securities
Litigation Reform Act of 1995 and "forward-looking information"
under the provisions of applicable Canadian securities legislation,
concerning the business, operations and financial performance and
condition of Goldcorp and the Transaction. Forward-looking
statements include, but are not limited to, statements with respect
to the benefits, effects and gains expected from the Transaction,
the completion of the Transaction generally and the timing thereof,
future price of gold, silver, copper, lead and zinc, the estimation
of mineral reserves and mineral resources, the realization of
mineral reserve estimates, the timing and amount of estimated
future production, costs of production, targeted cost reductions,
capital expenditures, free cash flow, 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 words 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", "should", "might" or "will", "occur" or
"be achieved" or the negative connotation thereof.
Forward-looking statements are necessarily based upon a number
of factors that, if untrue, could cause the actual results,
performance or achievements of Goldcorp, including with respect to
the Transaction, 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 and other by-product metals,
anticipated costs and ability to achieve goals. In respect of the
forward-looking statement concerning the anticipated timing of
closing of the Transaction, 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
Transaction 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, gold and other by-product metals
price volatility, discrepancies between actual and estimated
production, mineral reserves and mineral resources and
metallurgical recoveries, mining operational and development risks,
litigation risks, regulatory restrictions (including environmental
regulatory restrictions and liability), changes in national and
local government legislation, taxation, controls or regulations
and/or change in the administration of laws, policies and
practices, expropriation or nationalization of property and
political or economic developments in Canada, the United
States and other jurisdictions in which Goldcorp does or may
carry on business in the future, delays, suspension and technical
challenges associated with capital projects, higher prices for
fuel, steel, power, labour and other consumables, 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 believes its expectations are based upon reasonable
assumptions and 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 (including with respect to the Transaction) to be
materially different from those expressed or implied by such
forward-looking statements, including but not limited to: the
receipt of necessary competition, regulatory and third party
approvals; risks related to the ability of Bluestone to finance the
Transaction; risks related to the inability or failure to satisfy
the conditions to the completion of the Transaction; risks related
to the devotion of management time and resources required to
complete the Transaction, 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;
actual results of current reclamation activities; environmental
risks; conclusions of economic evaluations; changes in project
parameters as plans continue to be refined; future prices of gold
and other by-product metals; possible variations in ore reserves,
grade or recovery rates; failure of plant, equipment or processes
to operate as anticipated; risks related to the integration of
acquisitions; accidents, labour disputes; delays in obtaining
governmental approvals or financing or in the completion of
development or construction activities and other risks of the
mining industry, as well as those factors discussed in the section
entitled "Description of the Business – Risk Factors" in Goldcorp's
most recent annual information form available on SEDAR at
www.sedar.com and on EDGAR 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. The
forward-looking statements contained herein 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 Goldcorp's
operating environment. Goldcorp does not intend or undertake to
publicly update any forward-looking statements that are included in
this document, whether as a result of new information, future
events or otherwise, except in accordance with applicable
securities laws.
SOURCE Goldcorp Inc.