GOLDCORP – GG – Announces dismissal of Barrick’s claims against El Morro acquisition
GOLDCORP INC. (NYSE: GG) is pleased to announce that Ontario Court Justice Herman Wilton-Siegel has dismissed the claims of Barrick Gold Corporation seeking to declare unlawful and ineffective the transactions announced by Goldcorp Inc. and New Gold Inc. on January 7, 2010 with respect to the acquisition of the El Morro project in Chile. Goldcorp acquired 70% of the El Morro project from a subsidiary of New Gold, which acquired the El Morro project from Xstrata pursuant to the exercise of a right of first refusal. The right of first refusal came into effect on October 12, 2009 when Barrick entered into an agreement with Xstrata to acquire Xstrata’s 70% interest in the El Morro project. New Gold owns 30% of the project.
“We are pleased that the court has confirmed our position that our acquisition of El Morro was completely proper and consistent with the relevant agreements and Chilean law and that Goldcorp’s 70% ownership share of the project has now been clarified for our shareholders,” said Chuck Jeannes, Goldcorp President and Chief Executive Officer.
El Morro is a copper-gold development project located in the Huasco Province, Atacama region of northern Chile, approximately 800 km north of Santiago. Proven and probable gold reserves at December 31, 2011 totaled 5.84 million ounces of gold and 4.36 billion pounds of copper on a 70% basis.
As previously announced, El Morro site development and construction activities have been suspended since April 30, 2012 pending the correction by the Chilean environmental permitting authority of certain deficiencies specifically identified by a decision of the Antofogasta Court of Appeals. On June 22, 2012, the SEA initiated the administrative process to address the issues identified by the Court. The Company continues to work with Chilean authorities and local communities to correct the deficiencies. During the suspension period, Goldcorp will continue to evaluate opportunities to enhance the economics of the project.
About Goldcorp – GG
Goldcorp (GG) is one of the world’s fastest growing senior gold producers, with operations and development projects located in safe jurisdictions throughout the Americas. A Canadian company headquartered in Vancouver, British Columbia, GG employs more than 14,000 people worldwide. GG is committed to responsible mining practices and is well positioned to deliver sustained, industry-leading growth and performance.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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