Goldcorp Completes Acquisition of 70% Interest in El Morro Project

Goldcorp Completes Acquisition of 70% Interest in El Morro Project

VANCOUVER, BC – Goldcorp Inc. reported the acquisition of a 70% interest in the El Morro project, an advanced stage copper-gold project located in north-central Chile, Atacama Region, approximately 80 kilometres east of the city of Vallenar. On a 100% basis, El Morro contains proven and probable reserves of 6.7 million ounces of gold and 5.7 billion pounds of copper.

The acquisition was completed pursuant to the Acquisition Funding Agreement between Goldcorp and New Gold Inc. Goldcorp loaned $463 million to a New Gold subsidiary to fund the acquisition of the 70% interest from Xstrata Chile S.A., the former owner of the interest, pursuant to the exercise by the New Gold subsidiary of its right of first refusal. Following the closing of the purchase of Xstrata Chile‘s 70% interest by New Gold’s subsidiary, a Goldcorp subsidiary acquired that interest. Goldcorp also transferred $50 million to New Gold as provided in the Agreement. With the completion of these transactions, El Morro is now owned 70% by a Goldcorp subsidiary and 30% by a New Gold subsidiary. The parties also amended the El Morro Shareholders Agreement to provide that Goldcorp will advance 100% of New Gold’s share of funding requirements for the development and construction of the El Morro project through commercial production. Such funding will be provided as interest-bearing loans and will be repaid from the company’s share of production from the El Morro project. Goldcorp is now the operator of El Morro and its transition team will immediately begin work to continue progress toward project development.

The company’s address is Suite 3400, 666 Burrard Street, Vancouver, BC V6C 2X8, (604) 696-3000, fax: (604) 696-3001.