Goldcorp Forms JV With Barrick On Maricunga Gold Belt; To Acquire Exeter

(RTTNews) - Goldcorp Inc. (GG, G.TO) announced the company has entered into an agreement with Barrick Gold Corp. (ABX.TO, ABX) to leverage potential synergies within the Maricunga Gold Belt, located in the Atacama Region in northern Chile, through a 50/50 joint venture. The transaction is being effected through a number of steps which includes, among other things, an acquisition by Goldcorp of Exeter Resource Corp. (XRC.TO) and its 100%-owned Caspiche project located in the Maricunga Gold Belt in Chile, for share consideration of approximately $185 million.

Under a plan of arrangement, each common share of Exeter will be exchanged for 0.12 of a common share of Goldcorp. Goldcorp said the agreement with Barrick Gold will include the contribution of Caspiche into the joint venture.

The 50/50 joint venture deal includes the acqusition by Goldcorp of Kinross Gold Corp.'s 25% interest in Cerro Casale and 100% interest in the Quebrada Seca exploration project for an initial cash payment of $260 million, the granting of a 1.25% royalty interest by Goldcorp on 25% of gross revenues from payable metal from Cerro Casale and Quebrada Seca, with Kinross foregoing the first $10 million payable, a contingent payment of $40 million payable after a construction decision at Cerro Casale, and the assumption of a $20 million obligation to Barrick payable on commercial production at Cerro Casale.

The 50/50 joint venture deal also includes the acquisition by Goldcorp of an additional 25% interest in Cerro Casale from Barrick for a deferred payment obligation of $260 million, the granting of a 1.25% royalty interest by Goldcorp on 25% of gross revenues from payable metal from Cerro Casale and Quebrada Seca, a contingent payment of $40 million payable after a construction decision at Cerro Casale, and the transfer to Barrick of a 50% interest in Quebrada Seca for no additional consideration, followed by the joint contribution by Goldcorp and Barrick of 100% of Quebrada Seca to the joint venture.