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- Leagold to acquire the Los Filos Gold Mine in Mexico for US$350 million, of which US$279 million will be paid in cash and US$71 million in common shares of Leagold.
- Goldcorp to become an approximate 30% shareholder of Leagold at completion.
- Leagold will undertake debt and equity financings, arranged by UBS Investment Bank and BMO Capital Markets, respectively.
- Los Filos Mine is one of Latin America’s largest gold mines with 2015 production of 272,900 ounces, and 9 months to September 30, 2016 production of 194,000 ounces at an AISC/oz of US$854.
- Leagold aims to build a new mid-tier gold producer with a focus on opportunities in Latin America; Los Filos is the first acquisition.
VANCOUVER, Jan. 12, 2017 /CNW/ – Leagold Mining Corporation (TSX-V: LMC.H) (“Leagold”) is pleased to announce that it has entered into a binding sale and purchase agreement with Goldcorp Inc. (“Goldcorp”) dated January 11, 2017 to acquire the Los Filos Gold Mine in Guerrero State, Mexico for US$350 million (the “Acquisition”) through the purchase of Goldcorp’s Desarrollos Mineros San Luis S.A. de C.V. (“DMSL”) subsidiary. The purchase price is made up of US$279 million in cash and US$71 million in common shares of Leagold. Based on Leagold’s transaction financing plan, Goldcorp is expected to become an approximate 30% shareholder of Leagold at completion of the Acquisition. Goldcorp will have the right to nominate a director to Leagold’s Board at completion of the Acquisition.