Goldcorp (NYSE:GG) Agrees to Terrane Metals (CDNX:TRX.V) Deal

Goldcorp (NYSE:GG) (TSE:G) said Thursday that it wouldn't oppose the acquisition of all outstanding common and preferred shares of Terrane Metals Corp. (NYSE:TC) by Thompson Creek Metals (NYSE:TC).

The stake held by Goldcorp in Terrane outstanding shares is 58 percent; owning 240 million preferred shares and 27.3 million common shares in the company.

Once the deal is completed, Goldcorp will own 13.9 million common shares of Thompson Creek Metals, an 8 percent stake, and receive C$240.5 million in cash as well.

Goldcorp is one of the largest and low-cost gold miners in the world, only recently surpassed in costs by Newmont Mining (NYSE:NEM).

Goldcorp (NYSE:GG) and Terrane Metals (CDNX:TRX.V) Getting Married?

Goldcorp and Terrane Metals: Dating or Getting Married?

Terrane Metals (CDNX:TRX.V) recently enjoyed a nice infusion of capital, selling $70 million in stock to a group of dealers, and via Goldcorp. (TSE:G) adding another $30 million in a private stock placement.

A $40 million credit facility backed by Goldcorp was also extended another year for Terrane.

I bring it up to mention the possibility that Goldcorp may be developing more interest in Terrane Metals than helping them capitalize the company for more development.

Is this the beginning of what could turn into a marriage for the two? It's quite possible, and worth watching as things unfold between the two.

Goldcorp (TSE:G) Acquires Warrants and Shares from Terrane Metals (TSE:TRX)

Goldcorp Buys Warrants and Shares from Terrane Metals

Goldcorp (TSE:G) has acquired $97.6 million in shares and warrants from Terrane Metals (TSE:TRX), helping them fund the Mt. Milligan mine in British Columbia. A group of underwriters also were part of the acquisition of shares and warrants.

National Bank Financial Inc. led the group of underwriters who will acquire 63.6 million units, consisting of one common share and a half common share purchase warrant, for C$1.10 each. Goldcorp has agreed to purchase 27.3 million of the same units made up of common shares and warrants.

Construction on the mine, which has production estimates of 89 million pounds of copper and 262,100 ounces of gold annually for the first six years of mining, is scheduled to begin in July. The mine has a life-span of 22 years.

Terrane Metals is willing to sell a portion of Mt. Milligan to raise more needed capital, with the buyer getting the rights to the metal produced at the part of the project sold.