Goldcorp Inc. (TSX:G) has continued its strategy of shedding non-core assets after announcing a $505 million deal to sell its Escobal silver deposit in Guatemala to Tahoe Resources Inc. – a company headed by former Goldcorp CEO Kevin McArthur.
Goldcorp will keep a 40% stake in Tahoe after its planned IPO. The remainder of the proceeds will include at least $230 million in cash.
“Kevin is no longer affiliated with our company in any capacity either in management or on the board of directors. He happens to be one of the most accomplished mine builders out there,” Goldcorp vice-president of investor relations Jeff Wilhoit told Business in Vancouver. “There’s no conflict whatsoever.”
Wilhoit explained that determining a non-core asset is more complicated than simply asking, “Is there gold?” The Escobal deposit had negligible gold. But, other assets that Goldcorp has shed in the past few years have been gold-rich. For example, the company sold its Peak mine in Australia and Ampari mine in Brazil to GPJ Ventures Ltd. for $300 million in 2007.
“There are considerations in the geography, in the cost, the size of the mine. There are a lot of determinations,” he said. “Our strategy has been to try to focus on large cornerstone assets with high-quality reserves and long mine lives. Having the assets in politically stable jurisdictions is a primary consideration although the asset sales we’ve made don’t always fall into those categories.”
by Glen Korstrom