GOLDCORP INC is pleased to announce that the Company has entered into a binding agreement with New Gold Inc. 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.”
Goldcorp is a senior gold producer focused on responsible mining practices with safe, low-cost production from a high-quality portfolio of mines.