(All Amounts in $US unless stated otherwise)
Toronto Stock Exchange: G
New York Stock Exchange: GG
VANCOUVER, Aug. 7, 2012 /PRNewswire/ - GOLDCORP INC.
("GOLDCORP") (TSX: G, NYSE: GG) today announced that Primero
Mining Corp. ("Primero") (TSX: P, NYSE: PPP) has provided notice to
Goldcorp that it has elected to convert the principal amount
outstanding of its $30 million
convertible note held by Goldcorp into common shares of
Primero. As a result, on August 7, 2012, Goldcorp was issued a further
8,422,460 common shares of Primero, representing approximately 8.7%
of the issued and outstanding common shares of Primero. Immediately
following the issuance, Goldcorp owns an aggregate of 39,573,660
common shares of Primero, representing approximately 41% of the
issued and outstanding common shares of Primero (increased from
approximately 35%). The 8,422,460 common shares of Primero
were issued from treasury at a deemed price of $3.74 per share for an aggregate value of
$30 million.
The $60 million
12-month convertible note was issued to Goldcorp on August 6, 2010 in partial consideration of
Primero's acquisition of Goldcorp's San Dimas Mine in Mexico. Under the terms of the note,
Goldcorp had the option to extend the term by an additional year if
Primero exercised its option to convert the principal outstanding
amount of the note at the initial one year maturity date. On
July 20, 2011, Primero served notice
to convert the note into shares and, on August 4, 2011, Goldcorp elected to extend the
term by an additional year. On October 19,
2011, Primero repaid $30
million of the note in cash.
Goldcorp does not have any present intention to
acquire ownership of, or control over, additional securities of
Primero. Goldcorp has the right to maintain its percentage interest
in Primero as long as Goldcorp and its affiliates hold at least 10%
of the issued and outstanding common shares of Primero. It is the
intention of Goldcorp to evaluate its investment in Primero on a
continuing basis and such holdings may be increased or decreased in
the future. For the purposes of National Instrument 62-103, the
address of Goldcorp Inc. is 666 Burrard Street, Suite 3400,
Vancouver, British Columbia V6C
2X8.
Goldcorp is one of the world's fastest growing
senior gold producers. Its low-cost gold production is
located in safe jurisdictions in the Americas and remains 100%
unhedged.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains "forward-looking
statements", within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities legislation, concerning the business, operations and
financial performance and condition of Goldcorp Inc. ("Goldcorp").
Forward-looking statements include, but are not limited to,
statements with respect to the future price of gold, silver,
copper, lead and zinc, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing
and amount of estimated future production, costs of production,
capital expenditures, costs and timing of the development of new
deposits, success of exploration activities, permitting time lines,
hedging practices, currency exchange rate fluctuations,
requirements for additional capital, government regulation of
mining operations, environmental risks, unanticipated reclamation
expenses, timing and possible outcome of pending litigation, title
disputes or claims and limitations on insurance coverage.
Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as "plans", "expects",
"is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", "believes" or variations of
such words and phrases or statements that certain actions, events
or results "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved" or the negative connotation thereof.
Forward-looking statements are made based upon
certain assumptions and other important factors that, if untrue,
could cause the actual results, performances or achievements of
Goldcorp to be materially different from future results,
performances or achievements expressed or implied by such
statements. Such statements and information are based on
numerous assumptions regarding present and future business
strategies and the environment in which Goldcorp will operate in
the future, including the price of gold, anticipated costs and
ability to achieve goals. Certain important factors that could
cause actual results, performances or achievements to differ
materially from those in the forward-looking statements include,
amongs others, gold price volatility, discrepancies between actual
and estimated production, mineral reserves and resources and
metallurgical recoveries, mining operational and development risks,
litigation risks, regulatory restrictions (including environmental
regulatory restrictions and liability), activities by governmental
authorities (including changes in taxation), currency fluctuations,
the speculative nature of gold exploration, the global economic
climate, dilution, share price volatility, competition, loss of key
employees, additional funding requirements and defective title to
mineral claims or property. Although Goldcorp has attempted
to identify important factors that could cause actual actions,
events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended.
Forward-looking statements are subject to known
and unknown risks, uncertainties and other important factors that
may cause the actual results, level of activity, performance or
achievements of Goldcorp to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to: risks related to the integration of
acquisitions; risks related to international operations, including
economical and political instability in foreign jurisdictions in
which Goldcorp operates; risks related to current global financial
conditions; risks related to joint venture operations; actual
results of current exploration activities; environmental risks;
future prices of gold, silver, copper, lead and zinc; possible
variations in ore reserves, grade or recovery rates; mine
development and operating risks; accidents, labour disputes and
other risks of the mining industry; delays in obtaining
governmental approvals or financing or in the completion of
development or construction activities; risks related to
indebtedness and the service of such indebtedness, as well as those
factors discussed in the section entitled "Description of the
Business - Risk Factors" in Goldcorp's annual information form for
the year ended December 31, 2011
available at www.sedar.com. Although Goldcorp has attempted
to identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements.
Forward-looking statements are made as of the date hereof and
accordingly are subject to change after such date. Except as
otherwise indicated by Goldcorp, these statements do not reflect
the potential impact of any non-recurring or other special items or
of any dispositions, monetizations, mergers, acquisitions, other
business combinations or other transactions that may be announced
or that may occur after the date hereof. Forward-looking
statements are provided for the purpose of providing information
about management's current expectations and plans and allowing
investors and others to get a better understanding of our operating
environment. Goldcorp does not undertake to update any
forward-looking statements that are included in this document,
except in accordance with applicable securities laws.
SOURCE Goldcorp Inc.