Goldcorp Acquires Kaminak Gold for C$520 Million

Published: May 17, 2016 |

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Goldcorp Inc. has acquired all of the outstanding shares of Kaminak Gold Corporation for total consideration of approximately C$520 million.

Kaminak’s key asset is the 100 percent-owned Coffee Gold project, a structurally hosted hydrothermal gold deposit located approximately 130 kilometers south of the City of Dawson, Yukon. Coffee is a high-grade, open pit, heap leach mining project located in a top tier mining jurisdiction. The Coffee land package, comprising over 60,000 hectares, demonstrates significant potential for near-mine discoveries, with mineralization remaining open along strike and at depth. Coffee currently has total indicated gold mineral resources of 3.0 million ounces inclusive of total probable gold mineral reserves of 2.2 million ounces, and total inferred gold mineral resources of 2.2 million ounces.

“This acquisition is consistent with our strategy of partnering with junior exploration companies to identify and develop mining districts with significant exploration potential that is expected to grow our net asset value per share. Coffee is located within a politically stable jurisdiction and provides us with an opportunity to add high quality ounces to our development pipeline, at low all-in sustaining costs. With our strong financial position and mine construction expertise, we see significant potential to deliver value for all partners and stakeholders. We are committed to responsible, sustainable mining and will ensure this project is built to create lasting positive benefits for local First Nations and communities,” said David Garofalo, president and chief executive officer of Goldcorp.

“This transaction realizes many immediate benefits for our shareholders and at the same time ensures that the Coffee Gold Project will be developed in a timely and responsible manner. Goldcorp is a leading gold producer with a strong track record of responsible mining in Canada and a growth strategy focused on adding low-cost gold production in politically stable jurisdictions. Coffee is a natural fit within their portfolio and they have the experience, expertise and financial flexibility to build Coffee for the benefit of our First Nations partners and all Yukon stakeholders,” said Eira Thomas, president and CEO of Kaminak.

“In ten short years we have grown Kaminak from a small grass roots explorer to one of Canada’s top gold development companies. The discovery of the Coffee Gold Project has created value for our shareholders and its development will ultimately benefit our First Nations partners and all Yukoners. This transaction is the culmination of years of hard work by our technical and management teams and is a strong value proposition to all our shareholders,” said John Robins, chairman of Kaminak.

About Goldcorp
Goldcorp is a global senior gold producer focused on responsible mining practices with safe, low-cost production from a high-quality portfolio of mines.

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