Monday, 6th December 2004 (2462 views)

Canadian gold producers Goldcorp and Wheaton River Minerals are to merge as part of a $2.4 billion deal.

The friendly merger will create a firm with an output of 1.1 million ounces of gold a year, rising to 1.5 million ounces by 2007, with a stock market value of US$5 billion.

Under the terms of the deal, Goldcorp will offer one share for every four Wheat River shares.

Robert McEwen, chairman and chief executive of Goldcorp, described the merger as a "great combination".

"It achieves our strategic goals for production growth, diversification, financial strength and senior management," he added.

"I am confident that the new Goldcorp will be uniquely positioned in the gold industry to accelerate the growth of value for our shareholders."

The deal is the latest in a line of consolidation mergers to take place in the gold mining industry as companies seek to expand reserves and take advantage of rising gold prices.

 

« Back to the stories

 

The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.