Vancouver, BC –– Goldcorp Inc. (NYSE:GG, TSX:G) and Gold Eagle Mines Ltd. (TSX:GEA) announced today that the acquisition of Gold Eagle by Goldcorp has been completed.
Under the Plan of Arrangement, shareholders of Gold
Eagle were entitled to receive at their election and subject to
proration either C$13.60 in cash; 0.292 of a common share of Goldcorp
and $0.0001 in cash; or any combination thereof, for each Gold Eagle
common share held. Gold Eagle shareholders elected to receive a cash
amount greater than the maximum available according to the terms of the
Plan. As a result, shareholders will receive approximately 52.7% of the
cash amount that they elected or were deemed to have elected. In
aggregate, C$725.8 million in cash and 15.6 million common shares of
Goldcorp will be paid and issued to Gold Eagle shareholders. The common
shares of Gold Eagle will be de-listed from the Toronto Stock Exchange
effective at the close of markets on Tuesday, September 30, 2008.
Goldcorp’s acquisition of Gold Eagle’s Bruce Channel
discovery secures control of eight kilometres of strike length along the
prolific Red Lake trend in Ontario, Canada. Bruce Channel is southwest
of Goldcorp’s Red Lake mine and contiguous to its Cochenour-Willans
Project.
“The Gold Eagle transaction is consistent with our
strategy of adding high quality gold reserves and pursuing responsible
growth in the districts where we already operate,” said Kevin McArthur,
Goldcorp President and Chief Executive Officer. “Our focus now turns to
maximizing Red Lake’s potential through productivity initiatives, open
pit opportunities, enhanced milling alternatives and exploration success
already achieved at this world-class mine.”
Macquarie Capital Markets Canada Ltd. acted as
financial advisor to Goldcorp and J.P. Morgan Securities Inc. acted as
strategic advisor. Cassels Brock & Blackwell LLP acted as
Goldcorp’s legal counsel.
Goldcorp is the lowest cost, fastest growing senior
gold producer. Located entirely in the Americas, its gold production
and reserves are 100% unhedged.
Cautionary Note Regarding Forward-Looking Statements
Safe Harbor Statement under the United States Private
Securities Litigation Reform Act of 1995: Except for the statements of
historical fact contained herein, the information presented constitutes
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements, including but not limited to those with respect to the price
of gold, silver, copper, zinc and lead, the timing and amount of
estimated future production, costs of production, reserve determination
and reserve conversion rates involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievement of Goldcorp to be materially different from
any future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among others,
risks related to the integration of Gold Eagle’s business, properties
and assets with Goldcorp, risks related to international operations,
risks related to joint venture operations, the actual results of current
exploration activities, actual results of current reclamation
activities, conclusions of economic evaluations, changes in project
parameters as plans continue to be refined, future prices of gold,
silver and copper, zinc and lead as well as those factors discussed in
the section entitled “General Development of the Business – Risks of the
Business” in Goldcorp’s Form 40-F on file with the Securities and
Exchange Commission in Washington, D.C. and Goldcorp’s Annual
Information Form on file with the securities regulatory authorities in
Canada. Although Goldcorp has attempted to identify important factors
that could cause actual results to differ materially, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to
be accurate as actual results and future events could differ materially
from those anticipated in such statements.
Readers should not place undue reliance on
forward-looking statements. For a more detailed discussion of such
risks and other factors, please refer to Goldcorp’s website, www.goldcorp.com.
CONTACT INFORMATION:
Goldcorp Inc.
Jeff Wilhoit
Vice President, Investor Relations
(604) 696-3074
Fax: (604) 696-3001
Email: info@goldcorp.com
Website: www.goldcorp.com