Across the Riverlooks like we have a new neighbor!
Interesting also in that Goldcorp ended up with Western Silvers flagshipo deposit Penesquito.
Kaminak Announces Acquisition Transaction with Goldcorp
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 12, 2016) - Kaminak Gold Corporation (TSX VENTURE:KAM) ("Kaminak" or the "Company") is pleased to announce that the Company has entered into a definitive agreement with Goldcorp Inc. ("Goldcorp"), pursuant to which Goldcorp has agreed to acquire by way of a plan of arrangement (the "Arrangement"), all of the issued and outstanding shares of Kaminak in an all-share transaction. The total consideration offered for the Kaminak shares is approximately C$520 million.
Under the Arrangement, each common share of Kaminak will be exchanged for 0.10896 common shares of Goldcorp (the "Exchange Ratio"). The Exchange Ratio represents a value of C$2.62 per share based upon the closing price of Goldcorp on the TSX on May 11, 2016 of C$24.08.
This represents a premium of 33% based on the closing prices of both companies common shares on the TSX for Goldcorp and TSX-V for Kaminak on May 11, 2016 and a 40% premium based on Kaminak' s 20-day TSX-V volume weighted average price ending on May 11, 2016.
Kaminak's Directors unanimously recommend that Kaminak shareholders vote in favour of the Arrangement, and each Director intends to vote all of the Kaminak shares they own or control at the date of the Arrangement meeting in favour of the Arrangement, in the absence of a superior proposal.
Benefits to Kaminak Shareholders:
- Secures an immediate attractive premium for Kaminak shareholders;
- Provides Kaminak shareholders with exposure to a leading, gold company that is well positioned to develop the Coffee Gold Project;
- Goldcorp is the world's fourth largest gold producer and is focused on responsible mining practices, delivering safe, low-cost production throughout the Americas from a portfolio of long-lived, high-quality assets;
- Goldcorp has the financial strength and flexibility to develop the Coffee Gold Project and unlock the significant resource expansion potential at Coffee in the short to medium term;
- Goldcorp brings strong operational capabilities, contributing proven expertise in open pit mining and heap leach mining;
- Goldcorp is a leader in responsible mining practices and has a positive track record working with local First Nations at its operations in both Ontario and Quebec; and
- Kaminak shareholders will also gain access to Goldcorp's attractive dividend policy.
Eira Thomas, President and CEO of Kaminak stated: "This transaction realizes many immediate benefits for our shareholders and at the same time ensures that the Coffee Gold Project will be developed in a timely and responsible manner. Goldcorp is a leading gold producer with a strong track record of responsible mining in Canada and a growth strategy focused on adding low-cost gold production in politically stable jurisdictions. Coffee is a natural fit within their portfolio and they have the experience, expertise and financial flexibility to build Coffee for the benefit of our First Nations partners and all Yukon stakeholders."
John Robins, Chairman of Kaminak stated: "In ten short years we have grown Kaminak from a small grass roots explorer to one of Canada's top gold development companies. The discovery of the Coffee Gold Project has created value for our shareholders and its development will ultimately benefit our First Nations partners and all Yukoners. This transaction is the culmination of years of hard work by our technical and management teams and is a strong value proposition to all our shareholders."
"This acquisition is consistent with our strategy of partnering with junior exploration companies to identify and develop mining districts with significant exploration potential that is expected to grow our net asset value per share," said David Garofalo, Goldcorp President and Chief Executive Officer. "Coffee is located within a politically stable jurisdiction and provides us with an opportunity to add high quality ounces to our development pipeline at low all-in sustaining costs. With our strong financial position and mine construction expertise, we see significant potential to deliver value for all partners and stakeholders. We are committed to responsible, sustainable mining and will ensure this project is built to create lasting positive benefits for local First Nations and communities."
Summary of the Transaction
The Arrangement has been unanimously approved by the Boards of Directors of Kaminak and Goldcorp and will be subject to, among other things, the favourable vote of 66 2/3% of the holders of Kaminak shares and Kaminak options, voting as a single class, at a special meeting of Kaminak shareholders and option holders to be held no later than July 14th, 2016, receipt of all necessary regulatory and court approvals and the satisfaction of certain other closing conditions customary for a transaction of this nature.
The Arrangement Agreement provides that the board of directors of Kaminak may, under certain circumstances, terminate the agreement in favour of an unsolicited superior proposal, subject to payment of a termination fee of C$20.3 million, and subject to Goldcorp having the right to match the superior proposal in question. Kaminak has agreed not to solicit any alternative transactions.
Directors, officers and certain shareholders of Kaminak representing approximately 27.5% of Kaminak's outstanding shares have entered into voting support arrangements with Goldcorp under which they have agreed to vote in favour of the transaction.
The number of Goldcorp shares to be issued under the Arrangement will be approximately 21.6 million based on the issued and outstanding shares of Kaminak as of the announcement date, but will be subject to adjustment depending on the number of Kaminak options that may be exercised prior to the completion of the Arrangement. The transaction is expected to close no later than August 15, 2016 following the receipt of all required shareholder and regulatory approvals.