ONTARIO – Vancouver’s Goldcorp is expanding its Porcupine gold operations near Timmins with the purchase of Probe Mines of Toronto. The all-share deal is estimated to be worth $526 million.
Goldcorp will gain three new gold properties between Timmins and Cochrane, Bristol Township, Borden Lake South, and Borden. The latter is an advanced exploration project, considered by Probe to be one of the best development assets in the industry. The Borden property lies 160 km west of the Porcupine mines with an indicated resource of 9.3 million tonnes at 5.39 g/t Au and an inferred resource of 3.0 million tonnes grading 4.27 g/t Au. Respectively, the resources contain 1.6 million oz and 400,000 oz of gold.
Probe shareholders will receive 0.1755 of a Goldcorp share and 0.33 of a New Probe share for each share of Probe that they currently hold. The New Probe portfolio will include the Black Creek chromite-copper, the Tamarack copper-nickel-zinc-gold silver property, and the Victory copper-zinc-gold-silver property. The three exploration projects are located near McFauld’s Lake in the Ring of Fire.
New Probe will launch with $15 million in cash and $4 million due related to the previous sale of a gold royalty. The new company will be headed by the original Probe team including chairman Jamie Sokalsky and president and CEO David Palmer.
Goldcorp’s Porcupine gold operations include the Dome open pit and mill, the Hoyle Pond underground mine, and the Pamour open pit mine. Porcupine produced 291,000 oz of gold in 2013.
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