Goldcorp will acquire Andean Resources for $3.4bn, beating a rival offer from Canadian miner Eldorado Gold Corp.

The company said its cash and share offer of C$6.50 (US$6.26) has been unanimously approved by the board of directors of the companies.

Goldcorp’s offer has topped an all-share bid from Eldorado worth C$6.36 (US$6.12) a share.

The acquisition will help Goldcorp control Andean’s Cerro Negro gold project in the Santa Cruz province of Argentina.

The 215km2, Cerro Negro project is expected to hold 2.54 million ounces of gold and 23.56 million ounces of silver and will start production by late 2012.