Goldcorp Announces Sale of Los Filos Mine
VANCOUVER, Jan. 12, 2017 /CNW/ - Goldcorp Inc. (TSX: G, NYSE: GG) today announced that the Company has entered into a share purchase agreement (the "Agreement") with Leagold Mining Corporation (TSXV: LMC-H) ("Leagold"), pursuant to which it has agreed to sell its Los Filos Mine in Mexico to Leagold (the "Transaction").
Under the terms of the Agreement, Goldcorp will receive estimated consideration of $438 million, consisting of $279 million in cash (subject to certain closing adjustments), $71 million in Leagold common shares, and retain certain tax receivables of approximately $88 million. The common shares issued to Goldcorp as consideration are expected to represent approximately 30% of the issued and outstanding shares of Leagold following the closing of the Transaction. By closing of the Transaction, Goldcorp expects to recognize a reversal of a 2015 impairment in mining interests at Los Filos of approximately $30 to $60 million on a pre-tax basis.
"The divestiture of Los Filos is consistent with our strategy of focusing on our core camps to drive increasing net asset value per share," said David Garofalo, President and Chief Executive Officer of Goldcorp. "We thank the team at Los Filos for their commitment and dedication and we wish them continued success as part of Leagold. We will work closely with the team at site to ensure a smooth transition and look forward to working with Leagold to continue to add value at Los Filos."
The Transaction is subject to customary closing conditions and is expected to close in the first quarter of 2017. Scotia Capital 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.