Canadian mining giant Goldcorp has agreed to buy Andean Resources Limited for C$3.6 billion, thereby adding the Cerro Negro gold deposit in Argentina to its assets.
The Cerro Negro gold project is an advanced-stage, high-grade vein system in the Santa Cruz province of Argentina, with indicated resources of 2.54 million ounces of gold and 23.56 million ounces of silver. Inferred resources total 523,000 ounces of gold and 3.12 million ounces of silver.
"This transaction adds another key asset to Goldcorp's peer-leading growth profile and low-cost gold production pipeline," said Chuck Jeannes, Goldcorp president and chief executive officer.
“Cerro Negro is a high-grade, near-surface system that is expected to generate significant gold production at low cash operating costs following a relatively short construction period.”
The transaction values Andean shares at C$6.50, and Andean shareholders will have the option to elect to receive cash or shares or a combination of cash and shares, subject to an aggregate cash limitation of C$1 billion.
The announcement comes after fellow Canadian miner Eldorado Gold Corp proposed an all share $C3.4 billion offer, only to be outbid by Goldcorp. Eldorado had been seeking to merge with Andean for the past two years.
Andean shares are traded on the Toronto Stock Exchange and in Sydney, Australia.
