GOLD ACQUISITIONS – Glamis confident of success in Goldcorp bid

Shareholders of Toronto-based GOLDCORP INC. will "overwhelmingly" back Nevada-based GLAMIS GOLD LTD.'s US...
Shareholders of Toronto-based GOLDCORP INC. will "overwhelmingly" back Nevada-based GLAMIS GOLD LTD.'s US$3.4-billion takeover bid for the Canadian company, Glamis' CEO and president Kevin McArthur said during a conference call to announce the offer on Dec. 16.

Glamis said that it intends to offer Goldcorp shareholders 0.89 of a Glamis common share for each Goldcorp share. The offer values Goldcorp at US$17.80 per common share and represents a 22.6% premium based on the average trading price for both companies in the previous 30 days.
McArthur also said that Glamis had a previous friendly takeover offer for Goldcorp rejected in late November, but said this came before Goldcorp's announcement of its friendly bid for Vancouver-based WHEATON RIVER MINERALS LTD.

"We made an offer a few weeks ago and it certainly was prior to the Wheaton River announcement. We did receive a phone call regarding our offer saying that the [Goldcorp] board had acted and had chosen to go a different way," McArthur said.

Glamis' bid for Goldcorp is conditional on Goldcorp not acquiring Wheaton River or entering into any "material agreement" with Wheaton River. Alternatively, Glamis said that any Goldcorp offer or agreement with Wheaton River must be conditional on Goldcorp's takeover being unsuccessful.

A combined Glamis-Goldcorp would see gold production grow to over 1.4 million oz by 2007 from fully designed and permitted projects already under construction, and would also have an "outstanding" project pipeline and exploration portfolio, McArthur said. Total cash costs are expected to average less than US$120/oz Au over the next five years. The combined company would deal in pure gold and have no reliance on base metal credits to reduce operating costs, McArthur added.

Glamis said it intends to mail the takeover bid circular to Goldcorp shareholders in early January, with an expiry date 35 days thereafter. Glamis will hold its shareholders meeting on Feb. 9, 2005, prior to the expiry of the takeover bid.

Goldcorp's flagship property is the Red Lake gold mine in Canada, which produced 532,000 oz of gold in 2003. Glamis has gold mines and development projects in Nevada, Mexico and Central America.


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