Goldcorp says court dismisses rival Barricks claim that mine deal was illegal

TORONTO — Goldcorp Inc. says an Ontario judge has dismissed Barrick Gold Corp.’s claims that its acquisition of the El Morro project in Chile was illegal because its rival already had an agreement.Barrick Gold Corp. of Toronto, the world’s largest gold producer, claimed in the Ontario court that it had a deal in October 2009 to acquire a majority stake in the project from European miner Xstrata PLC.However, Xstrata’s minority partner, New Gold, claimed a right of first refusal, acquired the majority stake and sold it to Goldcorp, which provided the funding to facility the transaction.New Gold retained its original 30% and received $50-million in cash for assisting Goldcorp.“We are pleased that the court has confirmed our position that our acquisition of El Morro was completely proper and consistent with the relevant agreements and Chilean law and that Goldcorp’s 70% ownership share of the project has now been clarified for our shareholders,” said Chuck Jeannes, Goldcorp president and chief executive officer.El Morro is a copper-gold development project in the Huasco Province, Atacama region of northern Chile, approximately 800 kilometres north of Santiago.Goldcorp Inc. announced in April it has suspended construction of the El Morro gold-copper mine after the country’s Supreme Court rejected the $3.9-billion project’s environmental permit.The Vancouver-based company said it continues to work with Chilean authorities and local communities to correct deficiencies in the permit.Shares in the company, which made the announcement after markets closed, were down 1.86% or 73 cents to $38.44.

Leave a Comment

Your email address will not be published. Required fields are marked *