Newmont says ISS recommends shareholders vote in favour of Goldcorp deal

The Canadian Press

A worker overlooks water treated with cyanide to separate gold from other metals at the Yanacocha gold mine in Cajamarca, Peru, on Thursday, Oct. 15, 2015. Operations at Yanacocha, South America's largest gold mine, are a joint venture between Newmont Mining Corp., Minas Buenaventura and International Finance Corp. , Dado Galdieri/Bloomberg

DENVER - Newmont Mining Corp. (NEM.N) says proxy advisory firm Institutional Shareholder Services Inc. has recommended shareholders vote in favour of the gold miner's acquisition of Goldcorp Inc. (G.TO)

The company says the report found a vote in favour of the deal was warranted given what it called a solid strategic rationale and expected financial benefits, which are bolstered by the recent addition of a special dividend.

Newmont announced Monday it would pay a special dividend of 88 cents per share if its friendly takeover of Goldcorp is approved in an effort to address concerns raised by some shareholders.

The ISS report followed the firm's recommendation that Goldcorp shareholders vote in favour of the deal.

Under the proposed agreement, Newmont will exchange 0.328 of a share plus two cents in cash for each Goldcorp share.

Newmont shareholders vote on April 11, while Goldcorp shareholders vote on April 4.