Goldcorp Inc. (NYSE: GG) has extended its offer date to acquire all of the outstanding common shares of Osisko Mining Corporation to Apr 15, 2014. The company will also continue its due diligence process at Osisko's Malartic mine in Quebec.
In Jan 2014, Goldcorp commenced an offer to acquire all of the outstanding common shares of Osisko for about C$2.6 billion (roughly $2.4 billion) in cash and shares. Under the terms of the Offer, Osisko shareholders will be entitled to receive 0.146 of a Goldcorp common share and C$2.26 in cash for each Osisko share.
Upon completion of its full analysis of due diligence findings, Goldcorp will consider its position and explain its shareholders the next steps related to its existing offer to acquire Osisko.
Recently, Goldcorp filed National Instrument 43-101 technical report pertaining to its 100% owned Eleonore project in Quebec and its 40% owned Pueblo Viejo mine in Central America.
The Eleonore mine is expected to commence production from late 2014. Goldcorp expects gold production in 2014 to be in the band of 40,000–60,000 ounces. Average annual gold production, once the mine reaches full production, is expected to be about 600,000 ounces. Gold reserves are expected to be 4 million ounces. Total capital expenditure is expected to be between $1.8 and $1.9 billion. Roughly $1.3 billion has been already spent for the completion of the project.
Goldcorp has also set aside the full rehabilitation cost for its Eleonore gold mine as announced on March 3. Goldcorp has secured $40.1 million to cover 100% of the closure obligation associated with the Eleonore mine site.
Goldcorp currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the gold mining sector include AngloGold Ashanti Ltd. (AU), Golden Star Resources, Ltd. (AMEX:GSS) and Richmont Mines Inc. (AMEX:RIC). While AngloGold carries a Zacks Rank #1 (Strong Buy), Golden Star Resources and Richmont Mines hold a Zacks Rank #2 (Buy).
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