Goldcorp Inc. (NYSE:GG) said today it has made a deal with Andean Resources (TSE:AND) to acquire all their outstanding shares for $3.4 billion. That's a 35 percent premium over their Thursday close on the Toronto Stock Exchange.
The Cerro Negro gold project in Argentina is the major impetus behind the interest of Goldcorp in Andean.
Chuck Jeannes, Goldcorp President and Chief Executive Officer said, "This transaction adds another key asset to Goldcorp's peer-leading growth profile and low-cost gold production pipeline. Cerro Negro is a high-grade, near-surface system that is expected to generate significant gold production at low cash operating costs following a relatively short construction period. As well, the potential exists for discoveries of new veins within this large, prospective land position."
The deal has already been approved by boards of Goldcorp and Andean unanimously, and should close in the latter part of 2010 or the early part of 2011.