Vancouver’s Goldcorp Inc. (TSX:G) announced Wednesday morning it is selling its San Dimas gold-silver mine in Mexico for $500 million to Vancouver’s Mala Noche Resources Corp. (TSX-V:MLA).
Goldcorp will receive $275 million in cash, $175 million of Mala Noche common shares valued at the offering price of Mala Noche’s proposed equity financing and a $50 million promissory note payable over five years bearing 6% interest.
Goldcorp will hold an approximately 30% ownership interest in Mala Noche.
It is the second large divestment that Goldcorp has made in a month. In May, Goldcorp sold its Escobal silver deposit in Guatemala to Tahoe Resources Inc. for $505 million.
The divestments are consistent with Goldcorp’s strategy of narrowing its focus primarily to high-yield gold properties.
In 2009, San Dimas produced 113,000 ounces of gold and 5.1 million ounces of silver.
The deal has been approved by Goldcorp’s board but is subject to a number of conditions, including the completion of a proposed equity financing by Mala Noche.
Closing of the transaction is expected to occur on or about July 30.