Earth AI, Legacy Minerals make first greenfield palladium discovery using artificial intelligence
The companies announced the verified discovery of one of the largest palladium mineral systems in Australia.
Chuck Jeannes, Goldcorp’s chief executive.
Canada’s Goldcorp (TSX:G) (NYSE:GG) is expanding its presence around the gold mining hub of Northern Ontario, by acquiring Probe Mines Ltd in an all-stock deal that values the metals exploration company at $440 million (Cdn$526 million)
The move gives the mining giant control over the Borden Gold project, considered one of the most promising new gold discoveries in Canada, which is located about 160 km. west of Goldcorp’s Porcupine mine in Timmins, Ontario.
“This transaction is consistent with Goldcorp’s long-standing strategy of securing growth opportunities in and around our existing districts with a focus on low-cost, high-quality gold production,” Chuck Jeannes, Goldcorp’s chief executive, said in a statement.
The Vancouver-based miner, which already owns a 9.3% stake in Probe Mines, said shareholders of the smaller company would receive 0.1755 of a Goldcorp share in the deal, valuing Probe’s shares at C$5 each.
The deal represents a 49% premium to Probe’s closing price on Friday and will result in Goldcorp issuing about 17 million shares.
The Borden Gold project is considered one of the most promising new gold discoveries in Canada.
Former Barrick Gold CEO Jamie Sokalsky, who is the current chairman of Probe Mines, said the transaction was “an excellent outcome” for the company’s shareholders as it provides them with “a significant premium that recognizes the value embedded in Borden.”
Sokalsky, who left the top role at the world’s largest gold producer only four months ago, will continue in its role as chairman and chief executive David Palmer will remains as such as well, but the company will now be know as New Probe and run in partnership with Goldcorp to continue the success of the Probe team.
Jeannes’ firm agreed last week to sell the Wharf mine in South Dakota to Coeur Mining (NYSE: CDE) for $105 million. That announcement came alongside Goldcorp’s notice of an upcoming impairment charge of up to $2.7 billion on its Cerro Negro gold mine in Argentina due to challenging fiscal conditions in that country.
