Goldcorp completes Silver Wheaton sale - Guatemala, Mexico
Thursday, February 14, 2008
Vancouverite Goldcorp (TSX: G, NYSE:GG) has completed the sale of its 48% interest in Silver Wheaton (TSX, NYSE: SLW) to a group of underwriters for gross proceeds of Cdn$1.566bn (US$1.572bn), the companies reported separately.The offering was for 108mn common shares of Silver Wheaton at Cdn$14.50/share.
"This sale removes a perceived overhang in our stock while increasing market liquidity significantly, making Silver Wheaton a much more appealing long-term investment, particularly to institutional investors," Silver Wheaton CEO Peter Barnes said.
For Goldcorp, the transaction "represents the final element of the initiative to simplify our business, in addition to an impressive return on investment for our shareholders," CEO Kevin McArthur said. "This closing sharpens the focus on our gold operations and contributes to the strongest balance sheet amongst our peers."
Goldcorp aims to use proceeds from the sale to fund an expected 50% growth in gold production over the next five years, with capital spending over that period slated at more than US$3.90bn for the completion of projects including Peñasquito in Mexico, Élénore in Canada and Cerro Blanco in Guatemala.
The funds will also be used for sustaining capital at existing mines, Goldcorp added.
The possible construction of its 40% owned Pueblo Viejo project in the Dominican Republic, in which Barrick Gold (NYSE: ABX) holds a 60% interest, is not included in the five-year capex figure, Goldcorp added.
Business News Americas
