Goldcorp Inc. (TSY:G, NYSE: GG) has sold its 10.1% equity interest in Osisko Mining Corp. (TSX: OSK) for approximately $530 million.
“The sale of our investment in Osisko highlights Goldcorp’s continued success in redeploying internal capital from non-core assets to fund our leading growth profile,” Goldcorp CEO Chuck Jeannes said in a Goldcorp press release yesterday after market close. “The transaction reinforces our disciplined approach to maintaining an investment grade balance sheet.”
Jeannes said that the proceeds from the sale will fund Goldcorp’s existing projects.
“With over $1 billion in cash and forecast cash flows of nearly $2.5 billion at current metal prices in 2011, we have the required liquidity to fund our exceptional growth profile,” he said. “We have appreciated our relationship with Osisko and congratulate management for their delivery of shareholder value over the past few years.”
Goldcorp stock was up by just under 1% to $43.10 when markets opened this morning, and has risen nearly 5% since Monday’s closing price.
Calls to Goldcorp for comment were not returned by press deadline.