Goldcorp Completes Sale of Los Filos Mine to Leagold for $350 Million, Mexico
Published: April 21, 2017 |
Goldcorp has completed the sale of its Los Filos Mine in Mexico to Leagold Mining Corporation. Pursuant to the terms of the transaction, Goldcorp received an aggregate of 34,635,091 common shares of Leagold, representing 25.3 percent of Leagold’s issued and outstanding common shares, $250 million in cash and a $29 million short-term promissory note that is due on the earlier of (i) 120 days from closing and (ii) the receipt by Leagold of approval from the Mexican competition commission (COFECE) on a subsequent tranche of its equity financing. Following the completion of the second tranche of its equity financing, the company’s ownership on an as-issued basis will be 22.9 percent of Leagold’s issued and outstanding common shares. Goldcorp also retained certain tax receivables worth approximately $100 million.
“The divestiture of Los Filos unlocks further value and allows us to focus on our core camps. We look forward to participating in the future success of Leagold through our significant ownership interest,” said Goldcorp President and CEO, David Garofalo.
“Today marks a strong beginning for Leagold with the Los Filos mine becoming our platform for growth. We have transformed into a low-cost gold producer in Mexico and we will immediately focus on optimizing the mine and progressing the drilling programs and related preparation work for the development of a new underground mine at Bermejal,” said Leagold CEO, Neil Woodyer.
“We look forward to working with the Los Filos management team, the Los Filos workforce, and our local community partners as we develop and expand Los Filos for long-term success. In addition, we continue our search for additional acquisition and growth opportunities in Latin America, as we seek to grow into a multi-mine operator and create the next intermediate gold producer,” added Woodyer.
Goldcorp is a senior gold producer focused on responsible mining practices with safe, low-cost production from a high-quality portfolio of mines.
To stop by Goldcorp’s website, CLICK HERE
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
Copyright © 2017 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.