Shareholders of Vancouver's Terrane Metals Corp. (TSX-V:TRX) have approved a deal to give Goldcorp Inc. (TSX:G) a stake in its Mount Milligan copper-gold project in exchange for providing a $40 million loan guarantee.
The guarantee for an 18-month loan from the Bank of Montreal will help with finance construction and development of the Mount Milligan open-pit mine.
Under the terms of the option agreement, Goldcorp can convert its equity in Terrane into a participating joint venture interest in the Mount Milligan project. The deal would allow the two companies to jointly develop and operate the mine. The company owning the majority stake of the joint venture would become the operator.
Terrane Metals' share price range during the past week: between $0.37 and $0.40; 52-week high: $0.62; 52-week low: $0.32.
Goldcorp's share price range during the past week: between $33.10 and $37.43; 52-week high: $52.48; 52-week low: $22.40.