Toronto Stock Exchange: G
New York Stock Exchange: GG
VANCOUVER, Sept. 25 /CNW/ - Goldcorp Inc. (NYSE: GG, TSX:G) and Gold Eagle
Mines Ltd. (TSX:GEA) announced today that the acquisition of Gold Eagle by
Goldcorp has been completed.
Under the Plan of Arrangement, shareholders of Gold Eagle were entitled
to receive at their election and subject to proration either C$13.60 in cash;
0.292 of a common share of Goldcorp and $0.0001 in cash; or any combination
thereof, for each Gold Eagle common share held. Gold Eagle shareholders
elected to receive a cash amount greater than the maximum available according
to the terms of the Plan. As a result, shareholders will receive approximately
52.7% of the cash amount that they elected or were deemed to have elected. In
aggregate, C$725.8 million in cash and 15.6 million common shares of Goldcorp
will be paid and issued to Gold Eagle shareholders. The common shares of Gold
Eagle will be de-listed from the Toronto Stock Exchange effective at the close
of markets on Tuesday, September 30, 2008.
Goldcorp's acquisition of Gold Eagle's Bruce Channel discovery secures
control of eight kilometres of strike length along the prolific Red Lake trend
in Ontario, Canada. Bruce Channel is southwest of Goldcorp's Red Lake mine and
contiguous to its Cochenour-Willans Project.
"The Gold Eagle transaction is consistent with our strategy of adding
high quality gold reserves and pursuing responsible growth in the districts
where we already operate," said Kevin McArthur, Goldcorp President and Chief
Executive Officer. "Our focus now turns to maximizing Red Lake's potential
through productivity initiatives, open pit opportunities, enhanced milling
alternatives and exploration success already achieved at this world-class
Macquarie Capital Markets Canada Ltd. acted as financial advisor to
Goldcorp and J.P. Morgan Securities Inc. acted as strategic advisor. Cassels
Brock & Blackwell LLP acted as Goldcorp's legal counsel.
Goldcorp is the lowest cost, fastest growing senior gold producer.
Located entirely in the Americas, its gold production and reserves are 100%
Cautionary Note Regarding Forward-Looking Statements
Safe Harbor Statement under the United States Private Securities
Litigation Reform Act of 1995: Except for the statements of historical fact
contained herein, the information presented constitutes "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements, including but not limited to those
with respect to the price of gold, silver, copper, zinc and lead, the timing
and amount of estimated future production, costs of production, reserve
determination and reserve conversion rates involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievement of Goldcorp to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, risks related
to the integration of Gold Eagle's business, properties and assets with
Goldcorp, risks related to international operations, risks related to joint
venture operations, the 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 and copper, zinc and lead as well as those
factors discussed in the section entitled "General Development of the Business
- Risks of the Business" in Goldcorp's Form 40-F on file with the Securities
and Exchange Commission in Washington, D.C. and Goldcorp's Annual Information
Form on file with the securities regulatory authorities in Canada. Although
Goldcorp has attempted to identify important factors that could cause actual
results to differ materially, 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.
Readers should not place undue reliance on forward-looking statements.
For a more detailed discussion of such risks and other factors, please refer
to Goldcorp's website, www.goldcorp.com.
For further information:
For further information: Goldcorp Inc., Jeff Wilhoit, Vice President,
Investor Relations, (604) 696-3074, Fax: (604) 696-3001, Email:
firstname.lastname@example.org, Website: www.goldcorp.com