Goldcorp to Buy Andean Resources for $3.4 Billion
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Sep 3rd 2010 7:35AM
Updated Sep 3rd 2010 7:46AM
Goldcorp Inc. (GG) will purchase Andean Resources Limited (AND) for about C$3.6 billion ($3.4 billion).
Andean's principal asset is its Cerro Negro gold project in Argentina, the companies said in a statement. Cerro Negro currently has reported indicated resources of 2.54 million ounces of gold and 23.56 million ounces of silver.
"This transaction adds another key asset to Goldcorp's peer-leading growth profile and low-cost gold production pipeline," Goldcorp CEO Chuck Jeannes said.
Each common share of Andean can be exchanged for 0.14 common shares of Goldcorp or a cash payment of C$6.50, with an aggregate maximum cash consideration of C$1 billion. Shareholders who do not choose either option will receive Goldcorp shares. The total consideration for the purchase of 100% of Andean's full diluted shares is about C$3.6 billion.
Andean's principal asset is its Cerro Negro gold project in Argentina, the companies said in a statement. Cerro Negro currently has reported indicated resources of 2.54 million ounces of gold and 23.56 million ounces of silver.
Each common share of Andean can be exchanged for 0.14 common shares of Goldcorp or a cash payment of C$6.50, with an aggregate maximum cash consideration of C$1 billion. Shareholders who do not choose either option will receive Goldcorp shares. The total consideration for the purchase of 100% of Andean's full diluted shares is about C$3.6 billion.
