MONTREAL--Goldcorp offered to buy Probe Mines on Monday in a friendly stock deal valued at C$526 million (US$439 million), in a move to expand its holdings in Canada.
The Vancouver-based firm already owns a 9.3 percent stake in Probe, and is offering a 49 percent premium to acquire the rest.
Probe shares would be exchanged for 0.1755 common shares of Goldcorp.
Through the acquisition, Goldcorp gains the Borden Gold project near Chapleau, Ontario -- 160 kilometers from Goldcorp's Porcupine mine.
The deal is consistent with Goldcorp's growth strategy of buying up assets near its existing mines, the company's president, Chuck Jeannes, said in a statement.
"Transporting ore (from Borden) to Porcupine would significantly reduce capital costs and permitting requirements compared to a stand-alone development," he explained.
As part of the deal, a new company will also be created to continue Probe's exploration of its mineral properties in the so-called Ring of Fire region of northern Ontario.
Goldcorp will also receive a 9.3 percent stake in New Probe.
AFP
