MINERA ALUMBRERA SHAREHOLDERS ENTER AGREEMENT
FOR A FOUR-YEAR OPTION IN THE AGUA RICA COPPER GOLD PROJECT IN Argentina
VANCOUVER, BRITISH
COLUMBIA, MARCH 8, 2011 � GOLDCORP INC. (TSX: G, NYSE: GG) announced today that the Company
and Xstrata Queensland Limited (�Xstrata�) have signed a letter of intent with
Yamana Gold Inc. (Yamana) whereby Minera Alumbrera Limited Sucursal (MAA) would
have the exclusive option with respect to acquiring Yamana�s 100% interest in
the Agua Rica project located 35 kilometres southeast of the Alumbrera mine in
the Catamarca province in northwest Argentina.
MAA is a joint venture
operation between Goldcorp (37.5% owner), Xstrata (manager and 50% owner), and
Yamana (12.5% owner) that currently operates the Alumbrera mine. Under the
letter of intent, MAA will be granted an exclusive four-year option to acquire
Yamana�s interest in the Agua Rica project for option payments made by Goldcorp
and Xstrata of up to $110 million. During the option period MAA will manage the
Agua Rica project and fund a feasibility study and all development costs. The
respective ownership interests in MAA would remain unchanged and apply to the
Agua Rica project.
�This option agreement
represents a low-risk opportunity for Goldcorp to participate in the potential
of the Agua Rica project and is consistent with our focus on cultivating the
early-stage portion of our growth pipeline,� said Chuck Jeannes, Goldcorp
President and Chief Executive Officer. �We have valued our participation in the
successful and productive Alumbrera partnership over the last eight years, and
we look forward to exploring the opportunity at Agua Rica with this strong
team.�
Goldcorp and Xstrata can
collectively exercise the option at any time during the four-year period
through to an approval-to-proceed decision for construction of the Agua Rica
project. On approval to proceed, Yamana would receive $150 million and on
commissioning an additional US$50 million, plus the right to a deferred payment
related to 65% of the payable gold production from Agua Rica to a maximum of
2.3 million ounces.
Goldcorp and Xstrata will
finance all payments related to the option on a 42.86% and 57.14% basis
respectively. The transaction remains subject to the execution of binding
transaction documents.
Goldcorp is one of the
world�s fastest growing senior gold producers. Its low-cost gold production is
located in safe jurisdictions in the Americas and 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 Inc. (�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�, �is expected�, �budget�, �scheduled�, �estimates�,
�forecasts�, �intends�, �anticipates�, �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� or the
negative connotation thereof.
Forward-looking
statements are made based upon certain assumptions and other important factors
that, if untrue, could cause the actual results, performances or achievements
of Goldcorp to be materially different from future results, performances or
achievements expressed or implied by such statements. Such statements and
information are based on numerous assumptions regarding present and future
business strategies and the environment in which Goldcorp will operate in the
future, including the price of gold, anticipated costs and ability to achieve
goals. Certain important factors that could cause actual results, performances
or achievements to differ materially from those in the forward-looking
statements include, among others, gold price volatility, discrepancies between
actual and estimated production, mineral reserves and resources and
metallurgical recoveries, mining operational and development risks, litigation
risks, regulatory restrictions (including environmental regulatory restrictions
and liability), activities by governmental authorities (including changes in
taxation), currency fluctuations, the speculative nature of gold exploration,
the global economic climate, dilution, share price volatility, competition,
loss of key employees, additional funding requirements and defective title to
mineral claims or property. Although Goldcorp has attempted to identify
important factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as anticipated,
estimated or intended.
Forward-looking
statements are subject to known and unknown risks, uncertainties and other
important 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; risks related to
international operations, including economical and political instability in
foreign jurisdictions in which Goldcorp operates; risks related to current
global financial conditions; risks related to joint venture operations; actual
results of current exploration activities; environmental risks; future prices
of gold, silver, copper, lead and zinc; possible variations in ore reserves,
grade or recovery rates; mine development and operating risks; accidents,
labour disputes and other risks of the mining industry; delays in obtaining
governmental approvals or financing or in the completion of development or
construction activities; risks related to indebtedness and the service of such
indebtedness, 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, 2009 available at www.sedar.com. 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. Forward-looking statements are
made as of the date hereof and accordingly are subject to change after such
date. Except as otherwise indicated by Goldcorp, these statements do not
reflect the potential impact of any non-recurring or other special items or of
any dispositions, monetizations, mergers, acquisitions, other business
combinations or other transactions that may be announced or that may occur
after the date hereof. Forward-looking statements are provided for the purpose
of providing information about management�s current expectations and plans and
allowing investors and others to get a better understanding of our operating
environment. Goldcorp does not undertake to update any forward-looking
statements that are included in this document, except in accordance with
applicable securities laws.
For further information, please
contact:
Jeff Wilhoit
VP, Investor Relations
Goldcorp Inc.
3400-666 Burrard Street
Vancouver, British Columbia, V6C 2X8
Telephone: (604) 696-3074
Fax: (604) 696-3001
e-mail: info@goldcorp.com
website: www.goldcorp.com
. 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. Forward-looking statements are
made as of the date hereof and accordingly are subject to change after such
date. Except as otherwise indicated by Goldcorp, these statements do not
reflect the potential impact of any non-recurring or other special items or of
any dispositions, monetizations, mergers, acquisitions, other business
combinations or other transactions that may be announced or that may occur
after the date hereof. Forward-looking statements are provided for the purpose
of providing information about management�s current expectations and plans and
allowing investors and others to get a better understanding of our operating
environment. Goldcorp does not undertake to update any forward-looking
statements that are included in this document, except in accordance with
applicable securities laws.
For further information,
please contact:
Jeff Wilhoit
VP, Investor Relations
Goldcorp Inc.
3400-666 Burrard Street
Vancouver, British Columbia, V6C 2X8
Telephone: (604) 696-3074
Fax: (604) 696-3001
e-mail: info@goldcorp.com
website: www.goldcorp.com