Goldcorp acquires Canadian company Kaminak Gold for $404m

20 July 2016 (Last Updated July 20th, 2016 18:30)

Goldcorp has completed the acquisition of Canada-based Kaminak Gold for C$520m ($404m).

Goldcorp has completed the acquisition of Canada-based Kaminak Gold for C$520m ($404m).

Goldcorp will have access to Kaminak's wholly owned asset Coffee Gold open-pit, heap leach mining project located 130km south of Dawson city in Yukon.

The land package consists of more than 60,000ha and demonstrates potential for near-mine discoveries and mineralisation remains open along strike and at depth.

"The Coffee project has the potential to grow into a camp to deliver long-term significant sustainable value."

Goldcorp president and CEO David Garofalo said: "The acquisition of Kaminak and its Coffee project in the Yukon is consistent with our strategy of populating our asset pipeline with opportunities that are accretive to net asset value per share. 

"With a large, geologically prospective land package in a mining friendly jurisdiction, the Coffee project has the potential to grow into a camp to deliver long-term significant sustainable value for our partners and stakeholders.

“Kaminak has done an excellent job engaging with First Nations throughout the initial exploration phases, which will serve as a solid foundation for us to build upon as the project enters the next phase of development." 

At present, Coffee has total indicated gold mineral resources of three million ounces inclusive of total probable gold mineral reserves of 2.2 million ounces, and total inferred gold mineral resources of 2.2 million ounces. 

Goldcorp acquired all of the issued and outstanding common shares of Kaminak and now owns 100% of the outstanding Kaminak shares.