Goldcorp Inc announced that the Company has entered into an agreement pursuant to which it has agreed to sell its 100% interest in the Cerro Blanco gold-silver project, located in Guatemala, to Bluestone Resources Inc.
Goldcorp will receive consideration at closing of $18 million in cash, a 1% Net Smelter Return royalty on production, and common shares of Bluestone representing approximately 9.9% of the issued and outstanding shares upon completion of the Transaction. Goldcorp will receive an additional $15 million in cash upon declaration of “Commercial Production” at Cerro Blanco.
In addition, Goldcorp has granted Bluestone a right of first refusal with respect to certain assets and equipment at the Marlin mine, also located in Guatemala. The Marlin mine will continue reclamation and revegetation activities over the next three years, followed by ongoing monitoring and maintenance activities as planned. The last ore production is set to be processed in early 2017.
The Cerro Blanco transaction is subject to financing and other customary closing conditions and is expected to close in the first quarter of 2017. National Bank Financial acted as financial advisor to Goldcorp.
Goldcorp is a senior gold producer focused on responsible mining practices with safe, low-cost production from a high-quality portfolio of mines.