) announced that the company along with its joint venture partner
Barrick Gold Corp.
) will sell their respective stakes in Marigold mine in Humboldt
County, Nev. to
Silver Standard Resources Inc.
) for $275 million in cash.
The transaction is expected to close in Apr 2014. The completion
of the transaction is subject to customary closing conditions,
including regulatory approvals.
Both Goldcorp and Barrick invited a number of parties to conduct
due diligence and put forth offers to buy Marigold. Marigold is
jointly owned by Goldcorp and Barrick where the former is the
operator with 66.7% stake while the latter holds the remaining
The sale of the mine is in line with Goldcorp's strategy of
focusing on core assets, thereby creating value for shareholders.
Barrick is selling its 33.3% interest in Marigold mine as part of
its ongoing efforts to shed some higher-cost assets, thereby
reducing debt burden. This acquisition will help Silver Standard
to meet its goal of adding an operating mine in a
well-established and low-risk mining jurisdiction.
Marigold, an open-pit gold mine, produced 162,000 ounces of gold
in 2013 and is expected to produce between 142,000 and 150,000
ounces of gold this year, as reported by Goldcorp. Total proven
and probable mineral reserves as of Dec 31, 2012, at the Marigold
mine was 294.5 million tons. According to Goldcorp, Marigold has
consistently produced more than 140,000 ounces of gold annually
at gold recoveries in excess of 70%.
Goldcorp currently carries a Zacks Rank #3 (Hold).
A better-ranked stock in the gold mining industry is
Lake Shore Gold Corp.
) holding a Zacks Rank #2 (Buy).
BARRICK GOLD CP (ABX): Free Stock Analysis
GOLDCORP INC (GG): Free Stock Analysis Report
LAKE SHORE GOLD (LSG): Free Stock Analysis
SILVER STD RES (SSRI): Free Stock Analysis
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