GOLDCORP SELLS OSISKO INVESTMENT
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Toronto Stock Exchange: G New York Stock Exchange: GG
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(All Amounts in $US unless stated otherwise)
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VANCOUVER, Feb. 8 /CNW/ - GOLDCORP INC. (TSX: G, NYSE: GG) today announced that it has sold its 10.1% equity interest in Osisko Mining Corporation ("Osisko"), representing approximately 38.6 million common shares. The shares were sold on an underwritten block trade basis, at a gross price of C$13.75 per share. Goldcorp expects to receive cash proceeds of approximately C$530 million.
"The sale of our investment in Osisko highlights Goldcorp's continued success in redeploying internal capital from non-core assets to fund our leading growth profile," said Chuck Jeannes, Goldcorp President and Chief Executive Officer. "The transaction reinforces our disciplined approach to maintaining an investment grade balance sheet. The proceeds from this sale will be used to fund the development of Goldcorp's existing project pipeline. With over $1 billion in cash and forecast cash flows of nearly $2.5 billion at current metal prices in 2011, we have the required liquidity to fund our exceptional growth profile. We have appreciated our relationship with Osisko and congratulate management for their delivery of shareholder value over the past few years."
The syndicate was lead by Canaccord Genuity and UBS Securities Canada and included RBC Capital Markets, Scotia Capital, Bank of America Merrill Lynch, GMP Securities and Macquarie Capital Markets Canada.
Goldcorp is one of the world's fastest growing senior gold producers. Its low-cost gold production is located in safe jurisdictions in the Americas and remains 100% unhedged.
