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09:59 AM EST, 02/08/2017 (MT Newswires) -- Goldcorp Inc. (G.TO, GG) entered Wednesday into a binding agreement with New Gold Inc. (NGD.TO, NGD) that will see it purchase New Gold's 4% gold stream on the El Morro deposit for cash consideration of US$65 million. The El Morro deposit is part of NuevaUnion, a 50/50 joint venture with Teck Resources (TECK-B.TO) that combines the Relincho and El Morro deposits.
"The purchase of the stream from New Gold is consistent with our strategy of optimizing our portfolio to drive increasing net asset value per share," said David Garofalo, President and Chief Executive Officer. "El Morro is a world-class deposit, located in one of the best mining jurisdictions in the Americas. This stream unlocks further upside potential for our shareholders over the long-term. NuevaUnion is a unique project combining the expertise of two large-scale mining companies to jointly develop what is expected to be a low-cost, long-life asset."
New Gold's shares were recently up 5.7% at $3.92 apiece, at the lower end of their 52-week range of $3.11 -$7.87.
Price: 3.92, Change: +0.21, Percent Change: +5.7
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