The sale of Goldcorp Inc.'s 48% interest in Silver Wheaton Corp. will go a long way in helping fund the company's aggressive future growth plans, according to UBS analyst Tony Lesiak.

Goldcorp announced a secondary offering to sell 108 million Silver Wheaton shares at $14.50 each and is expected to use the $1.57-billion in proceeds to help fund a pipeline of projects expected to cost upwards of $5-billion over the next five years.

Mr. Lesiak said the deal should erase the need for an equity issue in the future, saying Goldcorp will have fully funded growth.

He also told clients that Goldcorp is now in a position to retire its existing debt and assuming it does, estimated the miner will have a net cash position greater than $1-billion at the end of this year.

He raised his price target from US$46 to US$47.50 per share to reflect Goldcorp's stronger balance sheet and the potential for it to reinvest cash into new projects. His "buy" rating remains unchanged."

Now Goldcorp can issue more stock to buy ARU....JMHO