Goldcorp Inc. (NYSE: GG), the precious metals exploration company, reported Thursday it would acquire a 70 percent stake in a copper-gold mining project in Chile, according to Associated Press.
Goldcorp said it would purchase Xstrata PLC's interest in the El Morro project through a deal with another stakeholder in the mine. El Morro, which is located in north-central Chile, contains proven and probable reserves of 6.7 million ounces of gold and 5.7 billion pounds of copper.
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Goldcorp said it would loan $463 million to New Gold Inc. (NYSE: NGD), which has a 30 percent interest in the mine, in order for New Gold to buy Xstrata's 70 percent stake. Once Xstrata is paid the $463 million and New Gold acquires its interest, New Gold will sell the 70 percent stake to Goldcorp for $50 million in cash.
In October, Barrick Gold Corp. (NYSE: ABX), the world's biggest gold producer, made a $465 million bid for Xstrata's interest in the mine. New Gold was granted a Jan. 11 deadline to block the sale, because it is a minority stakeholder in the company.
Goldcorp stock fell 24 cents to $41.71 a share in midday trading Thursday.
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