VANCOUVER – Kaminak Gold Corp
. has agreed to an all share takeover by Goldcorp
. The arrangement values Kaminak – and its Coffee advanced gold project in the Yukon – at $520 million.
The agreement calls for each share of Kaminak to be exchanged for 0.10896 common share of Goldcorp. The transaction values each Kaminak share at $2.62, a 40% premium over the Kaminak price over all Canadian exchanges and 33% over the closing price of Kaminak on May 11, 2016, on the TSX-V. Goldcorp will issue approximately 21.6 million shares to meet its obligation.
Kaminak's key asset is the 100%-owned Coffee gold project, a structurally hosted hydrothermal gold deposit located approximately 130 km south of the Dawson, YT. Coffee currently has total indicated gold mineral resources of 3.0 million oz (63.7 million tonnes at 1.45g/t Au) inclusive of total probable gold mineral reserves of 2.2 million oz (46.4 million tonnes at 1.45g/t), and total inferred gold mineral resources1 of 2.2 million oz (52.4 million tonnes at 1.31g/t). Mineralization remains open along strike and at depth. Coffee has the potential to become a high grade, open pit, heap leach project.
The boards of both companies have approved the arrangement. Please visit www.Goldcorp.com