Goldcorp to focus on creating value for stakeholders
Goldcorp Inc. (TSE:G, Mkt cap 23.51B, P/E – , Div/yield 0.06/2.28, EPS -1.65, Shares 812.26M) and Barrick Gold Corp have agreed to sell their interests in a Nevada gold mine for $275 million in cash, the Canadian gold miner has announced.
The transaction concerns the partners’ combined 100% stake in the active Marigold mine, which will be bought by Vancouver-based Silver Standard Resources in a deal expected to close in April. The divestment is in line with Goldcorp’s measures to ensure disciplined portfolio management while focusing on creating value for stakeholders, CEO Chuck Jeannes commented.
Goldcorp owns a 66.7% stake and is also the operator of the mine, which is located in Nevada’s Humboldt county, while Barrick owns a 33.3% stake in Marigold.
The gold miner did not say whether the sale had anything to do with its $2.6 billion hostile takeover offer for smaller sector player Osisko Mining Corp (TSE:OSK), which has brought the bid to court in an attempt to block it. The target company, which has a low-cost mine in northwest Quebec, is suing Goldcorp for allegedly misusing sensitive information that Osisko presented to the gold miner when they were discussing a friendly acquisition over five years ago. The smaller miner also insists that the offer filed by Goldcorp is too low.
In a statement, Goldcorp rejected Osisko’s allegations, saying that it has been involved in no improper activities related to the takeover bid.
The Quebec Superior Court, where the lawsuit was filed, has set a hearing March for 3rd to 5th to rule on its merits. As a result, Goldcorp has extended the expiration of its offer from February 19th to March 10th.
Goldcorp is well positioned to significantly increase production over the next few years.
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