After a $348 million initial public offering that closed this morning, another mining company will call Vancouver home and add to the city’s reputation as Western North America’s mining capital.
Tahoe Resources Inc. (TSX:THO) wants to mine silver in Guatemala and has paid $505 million to buy the Escobal deposit there from precious metal giant Goldcorp Inc. (TSX:G).
The Escobal deal consists of a US$230 million cash payment and 43,686,667 of Tahoe’s common shares.
That means Goldcorp owns 40% of Tahoe and will continue to evaluate the new junior as it drills and hopes to expand its resource estimate at Escobal.
“The divestiture of Escobal unlocks value for Goldcorp shareholders while providing additional capital to reinvest in our high-growth core asset portfolio,” said Goldcorp president and CEO Chuck Jeannes.
A week ago, BIV reported the $500 million sale of Goldcorp’s Mexican San Dimas mine to Vancouver-based startup Mala Noche Resources Corp. (TSX-V:MLA).
Both deals reveal tight-knit relationships among Vancouver’s mining community and exhibit Goldcorp’s ongoing plan to focus on high-yield gold assets while the precious metal trades at near record highs.
Tahoe’s president and CEO is Kevin McArthur, who is the former CEO of Goldcorp and Glamis Gold, which Goldcorp acquired.
Jaime Mondragon, Tahoe’s vice-president and CFO, is Glamis Gold’s former Guatemala controller, and Brian Brodsky, vice-president exploration, is Goldcorp’s former Central American exploration manager.
Although Goldcorp remains a major shareholder, Tahoe business director Ira Gostin told BIV the company is in charge of its own future.
“We are an independent company,” said Gostin. “They’re a shareholder, but we have a completely separate management team and our own strategy for moving forward.”