Goldcorp to advance $463 million to New Gold to acquire 70 percent interest in Chilean mine

Goldcorp to acquire interest in Chilean mine

NEW YORK — Precious metals explorer Goldcorp Inc. said Thursday it would buy a 70 percent stake in a copper-gold mining project in north-central Chile.

Goldcorp, which has headquarters in Vancouver, said it would acquire Xstrata PLC’s interest in the El Morro project through a deal with another stakeholder in the mine.

Goldcorp said it would loan $463 million to New Gold Inc., which has a 30 percent interest in the mine, so that New Gold can 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.

El Morro contains proven and probable reserves of 6.7 million ounces of gold and 5.7 billion pounds of copper.

In October, Barrick Gold Corp., the world’s biggest gold producer, made a $465 million bid for Xstrata’s interest in the mine. As a minority stakeholder, New Gold was granted a Jan. 11 deadline to block the sale.

Goldcorp stock fell 41 cents to $41.55 a share in midday trading Thursday.