Goldcorp CEO: Why I'm selling Mexico mine to Leagold Mining
VANCOUVER -- Goldcorp Inc. (G.TO) says it has agreed to sell its Cerro Blanco gold-silver project in Guatemala to Bluestone Resources Inc. (BSR.V).
Vancouver-based Goldcorp says it will receive $18 million in cash, a one per cent royalty on production, and 9.9 per cent of Bluestone shares once the transaction is completed.
Based on Wednesday's closing price, the Bluestone stake would be worth about $200,000.
Goldcorp will also receive an additional $15 million in cash once commercial production begins at Cerro Blanco.
In addition, Goldcorp has granted Vancouver-based Bluestone a right of first refusal for certain assets and equipment at its Marlin mine, also in Guatemala.
That mine will continue to undergo reclamation and revegetation activities over the next three years, with the last ore production set to be processed early this year.
The Cerro Blanco sale is expected to close in the first quarter.
Goldcorp will release its results for the fourth quarter of 2016 after markets close on Feb. 15.