Toronto Stock
Exchange: G New York Stock
Exchange: GG
(All
amounts in US dollars unless otherwise indicated)
GOLDCORP COMPLETES ACQUISITION OF
70% INTEREST IN EL MORRO PROJECT
VANCOUVER, British
Columbia, February 16, 2010 � Goldcorp Inc. (TSX: G; NYSE: GG) today announced the acquisition of
a 70% interest in the El Morro project, an advanced stage copper-gold project
located in north-central Chile, Atacama Region, approximately 80 kilometres
east of the city of Vallenar. On a 100% basis, El Morro contains proven and
probable reserves of 6.7 million ounces of gold and 5.7 billion pounds of
copper(1).
The acquisition was
completed pursuant to the Acquisition Funding Agreement between Goldcorp and
New Gold Inc. (�New Gold�) dated January 6, 2010 (the �Agreement�). Goldcorp
loaned $463 million to a New Gold subsidiary to fund the acquisition of the 70%
interest from Xstrata Chile S.A., the former owner of the interest, pursuant to
the exercise by the New Gold subsidiary of its right of first refusal. Following
the closing of the purchase of Xstrata Chile�s 70% interest by New Gold�s
subsidiary, a Goldcorp subsidiary acquired that interest. Goldcorp also
transferred $50 million to New Gold as provided in the Agreement. With
the completion of these transactions, El Morro is now owned 70% by a Goldcorp
subsidiary and 30% by a New Gold subsidiary. The parties also amended the El
Morro Shareholders Agreement to provide that Goldcorp will advance 100% of New
Gold�s share of funding requirements for the development and construction of
the El Morro project through commercial production. Such funding will be
provided as interest-bearing loans and will be repaid from the company�s share
of production from the El Morro project. Goldcorp is now the operator of
El Morro and its transition team will immediately begin work to continue
progress toward project development.
�El Morro is a world-class
project with low cash costs and great organic growth potential in one of the
best mining jurisdictions in the Americas,� said Chuck Jeannes, Goldcorp
President and Chief Executive Officer. �The foundation of Goldcorp�s
peer-leading growth profile was built on mines possessing these very
attributes. With one of the strongest balance sheets in the industry and a
project team fresh from building one of the largest new mines in the world, we
are well-positioned to advance development of El Morro. We look
forward to working with New Gold to develop this project for the benefit of the
shareholders of both companies. El Morro, along with Cochenour in
Ontario, �l�onore in Quebec and Noche Buena and Camino Rojo near Pe�asquito in
Mexico, forms the basis of an unrivalled pipeline of high-quality gold projects
designed to further extend and supplement our growth over the long term.�
Goldcorp�s financial
advisors are GMP Securities L.P. and its legal advisors are Cassels Brock &
Blackwell LLP in Canada and Prieto & C�a. in
Chile.
(1) El Morro�s mineral
reserves are reported as of March 31, 2008. Mineral reserves have been
calculated based on a gold price of $500/oz, a copper price of US$1.25/lb and a
cut-off of 0.30% copper-equivalent (�EqCu�) where: EqCu(%) = Cu(%) + 0.592 x Au
(g/t) and Cu(%) = percent copper and Au(g/t) = grams per tonne
gold. The qualified person as defined under NI43-101 is Mr. Richard J. Lambert,
P.E and formerly Principal Mining Engineer for Pincock, Allen & Holt Inc.,
currently Executive VP with Scott Wilson Roscoe Postle Associates.
Goldcorp is the lowest-cost
and fastest growing multi-million ounce gold producer with operations
throughout the Americas. Its gold production remains 100% unhedged.
Cautionary Note
Regarding Forward-Looking Statements
This press release contains �forward-looking
statements�, within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and applicable Canadian securities legislation,
concerning the business, operations and financial performance and condition of
Goldcorp. Forward-looking statements include, but are not limited to,
statements with respect to the future price of gold, silver, copper, lead and
zinc, the estimation of mineral reserves and resources, the realization of
mineral reserve estimates, the timing and amount of estimated future
production, costs of production, capital expenditures, costs and timing of the
development of new deposits, success of exploration activities, permitting time
lines, hedging practices, currency exchange rate fluctuations, requirements for
additional capital, government regulation of mining operations, environmental
risks, unanticipated reclamation expenses, timing and possible outcome of
pending litigation, title disputes or claims and limitations on insurance
coverage. Generally, these forward-looking statements can be identified
by the use of forward-looking terminology such as �plans�, �expects� or �does
not expect�, �is expected�, �budget�, �scheduled�, �estimates�, �forecasts�,
�intends�, �anticipates� or �does not anticipate�, �believes� or variations of
such words and phrases or statements that certain actions, events or results
�may�, �could�, �would�, �might� or �will be taken�, �occur� or �be
achieved�. Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the actual results, level
of activity, performance or achievements of Goldcorp to be materially different
from those expressed or implied by such forward-looking statements, including
but not limited to: risks related to the integration of acquisitions; legal
proceedings related to New Gold�s exercise of its right of first refusal and
Goldcorp�s acquisition of an interest in the El Morro project; risks related to
international operations; risks related to joint venture operations; 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, copper,
lead and zinc; possible variations in ore reserves, grade or recovery rates;
failure of plant, equipment or processes to operate as anticipated; accidents,
labour disputes; delays in obtaining governmental approvals or financing or in
the completion of development or construction activities and other risks of the
mining industry, as well as those factors discussed in the section entitled
�Description of the Business � Risk Factors� in Goldcorp�s annual information
form for the year ended December 31, 2008 available at www.sedar.com and Form
40-F for the year ended December 31, 2008 on file with the United States
Securities and Exchange Commission in Washington, D.C. Although Goldcorp
has attempted to identify important factors that could cause actual results to
differ materially from those contained in forward-looking statements, 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. Accordingly, readers should not
place undue reliance on forward-looking statements. Goldcorp does not undertake
to update any forward-looking statements that are included in this document,
except in accordance with applicable securities laws.
CONTACT INFORMATION:
Goldcorp Inc.
Jeff Wilhoit
Vice President, Investor Relations
Goldcorp Inc.
(604) 696-3074
Fax: (604) 696-3001
Email: info@goldcorp.com
Website: www.goldcorp.com