Goldcorp closes $1.6B US deal for Placer Dome mines
Goldcorp said Friday it has completed the purchase of a number ofPlacer Dome mining interests that Barrick Gold spun off following its acquisition of Placer âpaying $1.6 billion US for the properties.
The assetsinclude Placer Dome'sinterests in the Campbell mine, the Porcupine and Musselwhite joint ventures in Ontario, as well as a half-interest interest in the La Coipa gold and silver mine in Chile and a 40 per cent interest in the Pueblo Viejo project in the Dominican Republic.
Goldcorp expects to save millions by combining its rich Red Lake mine with the Campbell mine, which is adjacent to the Red Lake property.
Goldcorp said it paid for the assets with a mix of cash and borrowng from existing credit facilities.
The company saidthe acquisitions would boost its production this yearby about 50 per cent.Itsaid its proven and probable reserves would grow by 72 per cent.
CEO Ian Telfer said last month that Goldcorp would be looking for evenmore acquisitions, even after buying the Placer Dome properties.
Goldcorp has been on somewhat of a buying spree lately.
Last year, itpaid $2 billion to buy Wheaton River Minerals. It also bought Quebec-based Virginia Gold Mines for $420 million US and took a 10 per cent interest in Wolfden Resources.
Goldcorp is now North America's third biggest gold producer. Its shares were down $1.82 to $41.74 in Friday trading on the TSX.