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Updated: 10:48 AM EST Goldcorp To Acquire 6 Million Wolfden Resources Shares
THUNDER BAY, Ont. -(Dow Jones)- Wolfden Resources Inc. (WLF.T) has signed a letter of intent with Goldcorp Inc. (GG) pursuant to which Goldcorp will acquire 6 million Wolfden shares and assist Wolfden in arranging financing for the development of its High Lake project in Nunavut.
In a news release, Wolfden said the companies will also "endeavor to identify potential mutually beneficial acquisition opportunities."
Wolfden said Goldcorp will acquire from Wolfden, by way of private placement, 3 million common shares and 3 million flow-through common shares at C$3.60 a share, for gross proceeds of C$21.6 million.
On completion of the offering on or about Dec. 20, Goldcorp will own about a 9.82% stake in Wolfden, it noted.
Woldfden said it plans to use the proceeds from the sale of the flow-through shares for exploration programs to be conducted on its Canadian properties. The proceeds from the sale of the other shares will be used for working-capital purposes. Completion is subject to certain conditions and the receipt of regulatory approvals.
Upon completion of the offering, Goldcorp has agreed to provide assistance to Wolfden in identifying and arranging for financing in the respect of the development of its 100%-owned High Lake project. Wolfden noted that it's in the process of completing pre-feasibility and environmental baseline work in advance of submitting its Environmental Impact Study for the permitting of High Lake for production. It said its 2003 West Zone discovery at High Lake is one of the largest and highest-grade poly-metallic (copper, zinc, silver and gold) discoveries that has been made in North America in the last decade.
Wolfden holds several advanced-stage gold projects in Canada including two in the Red Lake gold camp in Ontario, where Goldcorp operates its Red Lake mine.
Wolfden is a mineral-exploration company with a diversified portfolio of advanced-stage properties and several ongoing exploration programs in Canada.
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Updated: 01:22 PM EST Goldcorp Declares Twelfth Monthly Dividend Payment for 2005
VANCOUVER, British Columbia--(BUSINESS WIRE)----All dollar amounts in United States dollars (US$)
GOLDCORP INC. (TSX:G)(NYSE:GG) is pleased to declare its twelfth monthly dividend payment for 2005 of $0.015 per share. Shareholders of record at the close of business on Monday, December 12, 2005 will be entitled to receive payment of this dividend on Wednesday, December 21, 2005.
Goldcorp is the world's lowest cost and fastest growing million ounce gold producer. Gold production in 2005 is expected to exceed 1.1 million ounces at a cash cost of less than US$60 per ounce. Goldcorp has approximately US$400 million in cash and equivalents, no debt and no hedging.
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Goldcorp To Acquire Virginia Gold In Friendly Deal
QUEBEC CITY -(Dow Jones)- Goldcorp Inc. (GG) has agreed to acquire Virginia Gold Mines Inc. (VIA.T) in a friendly deal, giving it ownership of Virginia's Eleonore gold project in James Bay, Que.
In a news release, Goldcorp said "Eleonore is a unique and significant property located in the core of what Goldcorp believes is one of the most promising new gold districts in North America."
Goldcorp said shareholders of Virginia will receive 0.4 of a Goldcorp common share and 0.5 of a share in a new public exploration company for each Virginia share held.
Based on the 10-day weighted average trading price for Goldcorp's common shares on the Toronto Stock Exchange, Goldcorp said the transaction values the Eleonore gold project at about US$420 million.
Goldcorp said it will issue 19.6 million common shares pursuant to the transaction, representing about 5% of its 359.5 million common shares outstanding after giving effect to the transaction.
Completion of the transaction is subject to entering into definitive agreements, approval by Virginia shareholders and receipt of regulatory approvals. Goldcorp expects the transaction will close in the first quarter.
The boards of both Goldcorp Inc. (GG) and Virginia Gold Mines Inc. (VIA.T) have approved the transaction, with Virginia's board receiving an opinion from Orion Securities Inc. that the transaction is fair, from a financial point of view, to its shareholders.
Goldcorp said officers and directors of Virginia have entered into lock-up and support arrangements under which they have agreed to vote in favor of the transaction. Virginia has also agreed to pay Goldcorp a break-up fee equal to 4% of Virginia's market capitalization if the transaction isn't completed in certain circumstances.
In a separate release, Virginia said the transaction values each of its shares at C$9.87 plus the value of each 0.50 of a New Virginia share, estimated at C$ 1.23 based on the fair market value of the assets and cash.
Total consideration received by Virginia shareholders represents a premium of about 43% based on a 10-day average period, Virginia said.
Virginia said it will transfer to the new Virginia exploration company about C$31 million in cash and securities (including receivables and short-term and long-term investments), cash to be received before closing from the exercise of Virginia options and Virginia warrants, its non-Eleonore exploration assets and a sliding scale 2% net smelter return royalty on the Eleonore property.
The holders of Virginia's warrants will also receive warrants of Goldcorp and the new Virginia exploration company, and all stock options or other rights to subscribe for unissued securities of Virginia will either be exercised or terminated.
Goldcorp also has the right to subscribe for up to 5% of the new exploration company's common shares, with warrants to enable Goldcorp to acquire up to an additional 2%. Pricing of the shares and the warrants will be determined in the context of the market.
Virginia is a mineral-exploration company.
Goldcorp, a gold producer, expects its 2006 gold production to exceed 1.4 million ounces at a cash cost of less than US$100 an ounce.
LONDON (Dec. 9) -- Gold fever took prices as high as $530.40 an ounce for the first time in nearly a quarter of a century on Friday as investors, particularly in Asia, rushed to buy an asset that has gained over 16 percent in the past month.
"This buying is just more of the same of what we have been seeing. I suspect also that it may be central bank buying that is supporting it on the dips," Paul Merrick of RBC Capital Markets said.
"Gold's rally seems relentless and it feels as if it wants to continue higher" despite prices standing at technically overbought levels, said James Moore, an analyst at TheBullionDesk.com.
Spot gold changed hands at $526.50/527.20 an ounce in New York, up from $519.50/520.30 last quoted on Thursday. The metal has soared roughly $75, or 16.4 percent, since November 7.
Gold's tight supply, strong global demand, worries about inflation and growing fund interest in precious metals and other commodities have unleashed a wave of speculative buying, defying warnings that the market was overbought.
"The activity in the bullion market remains very impressive, with aggressive buying of any dips and a dearth of selling in the rallies helping to create a bullish chart pattern of higher lows and higher highs, thereby attracting more momentum-based fund buying," Alan Williamson of HSBC said.
Fund managers were buying as part of a strategy to diversify portfolios, while some investors were speculating about potential purchases from some of the word's central banks -- previously long-time sellers.
"I strongly believe that Asia and China are buying -- but we will not know until they've finished buying or are close to it, for sure," said Juerg Kiener, chief investment officer at Singapore-based hedge fund Swiss Asia Capital, referring to central banks in the region.
A spokesman at the China Gold Exchange said: "We have encouraged the Bank of China to buy more gold, or if not, to relax the barriers and allow more Chinese people to do so."
However, he said he was not aware of the central bank's policy on the matter.
In November Russia, Argentina and South Africa expressed interest in increasing their gold holdings, even though European central banks have sold more than 100 tonnes since September.
COMEX February gold at the New York Mercantile Exchange rose $7.50, or 1.4 percent, at $530.20 an ounce. The day's high, at $534.30, was the loftiest for futures since April 1981.
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12/16/05 Goldcorp to buy Virginia Gold Mines (GG) By Tomi Kilgore NEW YORK (MarketWatch) -- Goldcorp (GG) entered into an agreement to buy Canada's Virginia Gold Mines (CA:VIA) in a stock swap. As part of the agreement, Virginia shareholders will receive 0.4 Goldcorp shares and 0.5 shares of a new public company, New Virginia. Goldcorp shares closed Thursday up 22 cents at $19.95.
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Wolfden Closes C$21.6 Million Financing With Goldcorp Dow Jones THUNDER BAY, Ont. -(Dow Jones)- Wolfden Resources Inc. (WLF.T) has completed the offering to Goldcorp Inc. (GG) of 3 million common shares and 3 million flow-through shares at C$3.60 each, for gross proceeds of C$21.6 million.
In a press release, Wolfden said Goldcorp now holds about 9.82% of Wolfden.
It said proceeds from the private placement will be used for exploration on its projects and for general working capital.
As part of this arrangement, Goldcorp will assist Wolfden in arranging financing for the development of its High Lake Project and the companies will try to identify potential joint acquisition opportunities.
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Goldcorp Confirms Agreement to Acquire Placer Assets in Connection with Friendly Barrick-Placer Dome Transaction Copyright Business Wire 2005 BUSINESS WIRE VANCOUVER, British Columbia--(BUSINESS WIRE)----Goldcorp Inc. ("Goldcorp")(TSX:G) (NYSE:GG) today announced that it has confirmed its previous agreement to acquire certain mining assets of Placer Dome Inc. from Barrick Gold Corporation upon successful completion of the friendly Barrick-Placer Dome transaction announced today. The purchase price will be US$1.485 billion in cash. Subject to any required consents and governmental approvals, Goldcorp will acquire Placer Dome's interest in the Campbell mine, the Porcupine JV and the Musselwhite JV in Ontario, as well as a 50% interest in the La Coipa gold/silver mine in Chile and a 40% interest in the Peublo Viego development project in the Dominican Republic. In order to fund the proposed acquisition, Goldcorp intends to use a portion of its current cash balances and existing credit facilities of over US$1.6 billion.
"We are pleased that Barrick and Placer Dome have agreed to a friendly transaction and look forward to concluding the acquisition of the Campbell mine and the portfolio of other operating, development and exploration assets." said Ian Telfer, President and CEO of Goldcorp. "We believe that the increased purchase price is justified as a result of recent increases in gold prices, the exploration success at Red Lake announced by Placer Dome on December 19, 2005 and additional synergies and tax efficiencies that we expect to arise from a friendly transaction. The recent discovery by Placer Dome of high-grade zones at the Campbell mine, including a down-dip extension of Goldcorp's Red Lake High Grade Zone validates Goldcorp's view of the significant exploration potential at the Red Lake camp."
Goldcorp is the world's lowest cost and fastest growing million ounce gold producer. As a result of this transaction, gold production in 2006 is expected to exceed 2.0 million ounces at a cash cost of approximately US$150 per ounce.
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Goldcorp Declares First Monthly Dividend Payment for 2006 Copyright Business Wire 2006 BUSINESS WIRE VANCOUVER, British Columbia--(BUSINESS WIRE)----
(All dollar amounts in United States dollars (US$)
GOLDCORP INC. (TSX:G)(NYSE:GG) is pleased to declare its first monthly dividend payment for 2006 of $0.015 per share. Shareholders of record at the close of business on Friday, January 20, 2006 will be entitled to receive payment of this dividend on Friday, January 27, 2006.
Goldcorp is the world's lowest cost and fastest growing gold producer. Gold production in 2006 is expected to exceed 2 million ounces at a cash cost of approximately US$150 per ounce and Goldcorp remains unhedged
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Goldcorp To Aquire 9.9% Stake In Beaufield Dow Jones OTTAWA -(Dow Jones)- Goldcorp Inc. (GG) has agreed to purchase, on a private- placement basis, 6.8 million stock-warrant units of Beaufield Consolidated Resources Inc. (BFD.V) at 50 Canadian cents each, for a total investment of C$ 3.4 million.
In a news release, Beaufield said each unit consists of one share and one-half of a share purchase warrant, with each whole warrant exercisable for one additional Beaufield shhare at 55 Canadian cents for two years.
Following the transaction, Goldcorp will hold 9.9% of Beaufield's common shares, or 14.2% on a fully-diluted basis after giving effect to the exercise of the warrants.
Beaufield said the agreement will allow Beaufield and Goldcorp the opportunity to cooperate on technical, financial and permitting issues relating to Beaufield's Opinaca property, which is adjacent to the Eleonore gold property in James Bay, Que.
As reported, Goldcorp has agreed to acquire Virginia Gold Mines Inc. (VIA.T), giving it ownership of Virginia's Eleonore project.
Beaufield said it will continue to control and explore its properties, including Opinaca, with cash on hand and with the newly acquired funds from Goldcorp.
Closing of Goldcorp's investment in Beaufield is subject to completion of formal documentation and all necessary regulatory and stock exchange approvals.
Blackmont Capital acted as financial adviser for Beaufield.
Following the transaction, Beaufield said it will have about C$6 million in cash and will be fully funded to embark on three active exploration programs in 2006.
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