Goldcorp buys New Gold’s gold stream at El Morro mine in Chile for $65M
Goldcorp bought New Gold's 30 per cent share in the mine in 2015, and now owns the gold stream that was granted to New Gold in the 2015 agreement
VANCOUVER—Goldcorp Inc., one of the world’s largest gold producers, has agreed to purchase New Gold’s four per cent gold stream in its Chilean El Morro mine for $65 million.
Goldcorp is principal owner of the mine.
New Gold, a Vancouver-based intermediate mining company, sold its 30 per cent share in El Morro to Goldcorp in 2015. New Gold’s 4 per cent gold stream was part of the 2015 deal, but now that has been sold to Goldcorp as well.
The El Morro mine in Chile’s Atacama region is one of the largest in the country, with in situ reserves estimated at 6.7 million ounces of gold and 4.9 billion pounds of copper.
The Chilean mine is part of NuevaUnión, a 50/50 joint venture with Teck Resources Ltd., Canada’s largest mining company, that combines Goldcorp and Teck Resources efforts in Chile.
“El Morro is a world-class deposit, located in one of the best mining jurisdictions in the Americas. This stream unlocks further upside potential for our shareholders over the long-term,” said David Garofalo, Goldcorp’s president and CEO.