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Goldcorp Acquires El Morro Gold Stream From New Gold

Goldcorp. Inc. (TSX: G; NYSE: GG) officials report that the company has entered into a binding agreement to purchase New Gold Inc.’s (TSX: NGD; NYSE: NGD) 4% gold stream on the El Morro deposit for $65 million. The El Morro deposit is part of NuevaUnión, a 50-50 joint venture with Teck Resources that combines the Relincho and El Morro deposits. "The purchase of the stream from New Gold is consistent with our strategy of optimizing our portfolio to drive increasing net asset value per share," says David Garofalo, Goldcorp’s president and chief executive officer. "El Morro is a world-class deposit, located in one of the best mining jurisdictions in the Americas….NuevaUnión is a unique project combining the expertise of two large-scale mining companies to jointly develop what is expected to be a low-cost, long-life asset.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

New Gold: Gold Stream To Allow Advancement Of Rainy River

Wednesday February 09, 2016 08:40

New Gold Inc. (TSX: NGD; NYSE: NGD) says an agreement to sell a gold stream at El Morro will provide the company liquidity needed to advance construction of the Rainy River project, where production is expected in September. The company sold a 4% gold stream on the El Morro deposit to Goldcorp. Inc. (TSX: G; NYSE: GG) for $65 million. "Our interest in El Morro has generated significant value for our company over the last several years," says Hannes Portmann, New Gold’s president and chief executive officer. "The sale of the stream allows us to realize $65 million from an asset that is not a core part of our portfolio to support our key, near-term growth project at Rainy River." Total expenditures on El Morro by New Gold and its predecessor companies since the asset was first acquired have been less than $7 million, the company says. New Gold says that that, including the $65 million payment for the stream, the company will have generated total proceeds of $205 million through a series of El Morro transactions over the last seven years. The transaction with New Gold is expected to close this month, New Gold adds.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Iamgold: Revolving Credit Facility Now $250 Million

Wednesday February 09, 2016 08:40

Iamgold Corp. (TSX: IMG; NYSE: IAG) announces that commitments from a syndicate of lenders to its existing revolving credit facility now total $250 million. “Iamgold’s balance sheet is strong, ending 2016 with approximately $750 million in cash, cash equivalents and restricted cash, which exceeds the $489 million of our bonds that are due in October 2020," says Carol Banducci, executive vice president and chief financial officer. "Further bolstering the company's liquidity are (Tuesday’s) additional commitments from the lenders amounting to $80 million, bringing the corporate facility to a total of $250 million."

By Allen Sykora of Kitco News; asykora@kitco.com

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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