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Goldcorp, Barrick selling stakes in Nevada mine

File photo of Chuck Jeannes, CEO of Goldcorp.

Ben Nelms/Reuters

Goldcorp Inc., the company that has made a $2.6-billion hostile takeover offer for smaller rival Osisko Mining Corp., is selling its joint-venture interest in a Nevada gold mine.

Vancouver-based Goldcorp and Barrick Gold Corp. said on Tuesday they are selling their combined interests in the active Marigold mine for $275-million in cash to Silver Standard Resources, also of Vancouver.

Goldcorp did not say if the sale of its 66.7 per cent stake in Marigold is related to its attempt to acquire Osisko, whose main asset is a low-cost gold mine – Canadian Malartic – in northwest Quebec.

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"This transaction is consistent with Goldcorp's ongoing strategy of disciplined portfolio management with an emphasis on creating value for shareholders through the focus on core assets," Goldcorp president and chief executive officer Chuck Jeannes said.

"Marigold has been an important contributor to the growth of Goldcorp and we are pleased that a company with the capabilities of Silver Standard will be taking on this operation."

Goldcorp is also the operator of Marigold; Barrick – the world's largest gold miner – owns a 33.3-per-cent stake in Marigold.

For Toronto-based Barrick, the Marigold sale is part of an ongoing strategy to shed some higher-cost assets and reduce the debt burden.

Silver Standard president and CEO John Smith said Marigold is a welcome addition to its portfolio of "an operating mine in a well-established, low-risk jurisdiction."

Meanwhile, Goldcorp continues in its efforts to clinch Montreal-based Osisko, which has gone to court to try and block the takeover bid.

Osisko alleges that Goldcorp misused confidential information it received in on-and-off merger talks going back more than five years; it also says that Goldcorp's offer of a 15 per cent premium based on the closing prices of Osisko and Goldcorp on the Toronto Stock Exchange on Jan. 10 is too low.

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Canadian Malartic is one of the biggest precious metal mines in Canada, boasting 10.1 million ounces of gold reserves.

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About the Author
Quebec Business Correspondent

Bertrand has been covering Quebec business and finance since 2000. Before joining The Globe and Mail in 2000, he was the Toronto-based national business correspondent for Southam News. He has a B.A. from McGill University and a Bachelor of Applied Arts from Ryerson. More


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