A day after Vancouver-based Eldorado Gold Corp. (TSX:ELD) proposed a merger with Andean Resources Ltd. (TSX:AND), Goldcorp Inc. (TSX:G) has swooped in to scoop up Andean for $3.6 billion.
In a deal announced late Thursday, Goldcorp said both its and Andean’s board of directors had unanimously approved the takeover deal, which is one of the largest this year in Vancouver’s mining sector.
“Goldcorp has consistently pursued a disciplined portfolio management strategy that seeks to upgrade the overall asset base through the addition of high-quality gold assets in stable jurisdictions … this transaction fits that strategy perfectly,” said Goldcorp president and CEO Chuck Jeannes.
In a conference call Friday morning, Goldcorp said it began monitoring Andean’s progress at its flagship Cerro Negro gold project two years ago.
The project is in a high-grade vein system in Argentina’s Santa Cruz province and contains 2.54 million ounces of gold and 23.56 million ounces of silver in an indicated resource category.
“The timing is right for Goldcorp to take the baton at this point and develop this exceptional project into the world-class project it will become,” Wayne Hubert, Andean’s CEO, said on the call.
The takeover comes one day after Eldorado issued a release that proposed a merger between it and Andean to create a leading low-cost gold producer.
In the release, Eldorado president and CEO Paul Wright said there had been considerable “back and forth” between it and Andean over the last two years.
At press time, Eldorado’s shares were down 4.63% to $19.58, Goldcorp’s shares were down 4.61% to $44.05 and Andean’s shares were up 40.96% to $6.78 per share.