Goldcorp Sells Mexico Mine

Canada’s Goldcorp says it is selling its gold and silver San Dimas mine in Mexico to Mala Noche Resources for CAD500m, of which it will receive CAD275m in cash, CAD175m in Mala Noche common shares and a CAD50m promissory note payable over 5 years bearing an interest rate of 6% per year. Goldcorp, which says it will redeploy the proceeds into funding its growth without diluting shareholders, will own about 30% of Mala Noche after the transaction closes. Closing of the transaction is expected to occur on or about July 30. In 2009, San Dimas produced 113,000 ounces of gold and 5.1m ounces of silver. Goldcorp’s legal advisors are Cassels Brock & Blackwell and Lawson Lundell. A fairness opinion was given by CIBC World Markets.