News release via Canada NewsWire, Vancouver 604-669-7764
Attention Business Editors:
GOLDCORP ENHANCES GOLD PRODUCTION PIPELINE WITH ACQUISITION OF ANDEAN
VANCOUVER, Sept. 2 /CNW/ - Goldcorp Inc. ("Goldcorp") (NYSE:GG, TSX:G)
and Andean Resources Limited ("Andean") (TSX and ASX: AND) today announced an
agreement whereby Goldcorp will acquire, through a scheme of arrangement under
Australian law ("the Arrangement"), all of the outstanding shares of Andean.
The total consideration for the purchase of 100% of the fully diluted shares
of Andean is approximately C$3.6 billion.
Andean's principal asset is the 100%-owned Cerro Negro gold project, an
advanced-stage, high-grade vein system located in the Santa Cruz province of
Argentina. Comprising 215 square kilometers, Cerro Negro currently has
reported indicated resources of 2.54 million ounces of gold and 23.56 million
ounces of silver. Inferred resources total 523,000 ounces of gold and 3.12
million ounces of silver1. Cerro Negro also contains several other vein
structures, including the Mariana Central zone, where numerous recent drill
intercepts have demonstrated high-grade gold and silver over significant
"This transaction adds another key asset to Goldcorp's peer-leading
growth profile and low-cost gold production pipeline," said Chuck Jeannes,
Goldcorp President and Chief Executive Officer. "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.
A very exciting feature of the project is the opportunity for significant
continued growth of gold resources through expansion of the existing deposits
and the discovery of additional zones along the strike of the veins. As well,
the potential exists for discoveries of new veins within this large,
prospective land position.
"Goldcorp has consistently pursued a disciplined portfolio management