Stock for Vancouver’s Exeter Resource Corp. (TSX:XRC) shot up 55% Tuesday March 28 on the news that it will be acquired by Goldcorp. (TSX:G) for US$185 million.
Goldcorp. also announced Tuesday it will spend more than US$700 million to partner up with Barrick Gold Corporation (TSX: ABX) on a 50-50 joint venture. All of the transactions announced Tuesday are focused on consolidating deposits and projects in the Maricunga Gold Belt in Northern Chile.
Exeter owns the Caspiche Project in Chile – a large gold-copper deposit. Goldcorp will acquire the project through its acquisition of Exeter.
In its joint venture deal with Barrick, Goldcorp will acquire a 25% interest in the Cerro Casale project from Kinross Gold Corp. (TSX:K) and 100% interest in its Quebrada Seca exploration project for US$260 million and plus royalty interest.
Goldcorp will also acquire another 25% interest in Cerro Casale from Barrick, for US$250 million. Together, the two Canadian gold mining companies plan to jointly develop a new mine.
Goldcorp’s partnership with Barrick is similar to the US$3.5 billion joint venture it entered into with Vancouver’s Teck Resources (TSX:TCK.B) in 2015 – the El Morro project, which is also in Chile.
In the El Morro project, both companies plan to reduce capital outlays by sharing infrastructure, including tailings facilities, power and export terminal.
"The joint venture with Barrick has the potential to allow us to consolidate infrastructure to reduce capital and operating costs, reduce the environmental footprint and provide increased returns compared to two standalone projects,” Goldcorp CEO David Garofalo said in a news release.
“With our combined technical and financial strength, we see significant potential to advance these projects and increase net asset value per share over time, delivering value for all partners and stakeholders."
