Zijin Mining to take 9.9% stake in Montage Gold
As part of the deal, the Lundin Family Trust also agreed increase its stake in the company from 17.7% to 19.9%.
Canada’s Goldcorp (TSX:G)(NYSE:GG), the world’s third largest gold producer by market value, is selling mines in Mexico and Guatemala to two different buyers as part of its ongoing efforts to focus on highly profitable, core assets.
The Vancouver-based company said it will receive an estimated $438 million worth of cash, stock and other assets by selling its Los Filos gold-and-silver mine in Mexico to Leagold Mining Corp (TSX-V: LMC-H)
Move is part of Goldcorp’s efforts to focus on highly profitable, core assets.
The stock portion of the deal is worth $71 million, Goldcorp said, and will represent about 30% of Leagold’s outstanding shares after the transaction. The company will also keep certain tax receivables valued at $88 million.
The news came after the miner announced late Wednesday that it entered into an agreement to sell its Guatemalan Cerro Blanco gold-silver project to Bluestone Resources Inc. (TSX-V: BSR).
Bluestone will pay $18 million in cash, an additional $15 million cash once commercial production starts, a 1% net smelter return royalty on production and shares representing a 9.9% stake in the firm.
The Cerro Blanco deal is expected to close in the first quarter of this year, subject to conditions.
Shares in the company were up almost 2% in Toronto at Cdn$19.42 and 1.6% in New York at $14.7 at 11:15AM ET.
