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Friday, September 3, 2010

Goldcorp (NYSE:GG) Acquires Andean (TSE:AND) Shares for $3.4 Billion

Goldcorp (NYSE:GG) announced it has acquired Andean Resources (TSE:AND), eyeing its Cerro Negro gold project in Argentina.

Cerro Negro has indicated resources of 2.54 million ounces of gold and 23.56 million ounces of silver. Inferred resources are 523,000 ounces of gold and 3.12 million ounces of silver.

The project is wholly owned by Andean, making it even more desirable to Goldcorp.

Goldcorp will pay a 35 percent premium of $3.4 billion for the company, as of closing on Thursday, September 2.

Chuck Jeannes, Goldcorp President and Chief Executive Officer said, "Cerro Negro is a high-grade, near-surface system that is expected to generate significant gold production at low cash operating costs following a relatively short construction period. As well, the potential exists for discoveries of new veins within this large, prospective land position."

The boards of both companies have already unanimously approved the deal, which should close in late 2010 or the early part of 2011.

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