Issue link: http://resourceworld.uberflip.com/i/685011
J U N E / J U L Y 2 0 1 6 www.resourceworld.com 9 the company rather than adding unprofitable ounces to the production profile for the sake of production growth. The opportunities within the five prolific mining camps Goldcorp controls have significant district advantages. Goldcorp already owns them; they leverage its existing infrastructure and people, are low in capital intensity, and can be easily financed internally. For all these reasons management believes the company has the potential for high rates of return which will contribute to their objective of growth of net asset value per share in 2016 and beyond. n Disclosure: The information and opinions contained in this article have been sourced from Goldcorp's 2016 Annual General Meeting and Q1 Conference Call. This article is provided for entertainment purposes only and is not intended to be investment or professional advice of any kind. Always consult an independent registered investment advisor prior to making any financial decisions. Author is not a shareholder in Goldcorp. Goldcorp acquirinG KaminaK Gold Goldcorp Inc. [G-TSX; GG-NYSE] has reached a definitive arrangement to acquire all the outstanding shares of Kaminak Gold Corp. [KAM-TSXV]. The total consideration offered is approximately CDN $520 million. Under the arrangement, each common share of Kaminak will be exchanged for 0.10896 common shares of Goldcorp. Based on the closing price of Goldcorp's common shares on the Toronto Stock Exchange on May 11, 2016, the transaction values each Kaminak share at CDN $2.62. The consideration received by Kaminak shareholders represents a 40% premium over the 20-day volume-weighted average share price of Kaminak trading on Canadian exchanges for the period ending May 11, 2016 and a premium of 33% over Kaminak's closing share price on the TSX Venture Exchange on May 11, 2016. The number of Goldcorp shares to be issued under the arrangement will be approximately 21.6 million based on the issued and outstanding shares of Kaminak. Kaminak's key asset is the 100%-owned Coffee gold proj- ect, a structurally-hosted, hydrothermal, gold deposit about 130 km south of the City of Dawson, Yukon. Coffee is a high- grade, open pit, heap leach, mining project located in a top tier mining jurisdiction. The Coffee land package, comprising over 60,000 hectares, demonstrates significant potential for near-mine discoveries, with mineralization remaining open along strike and at depth. Coffee currently has total indicated gold mineral resources of 3.0 million ounces (63.7Mt at 1.45g/t) inclusive of total probable gold mineral reserves of 2.2 mil- lion ounces (46.4Mt at 1.45g/t), and total inferred gold mineral resources of 2.2 million ounces (52.4Mt at 1.31g/t). "This acquisition is consistent with our strategy of partner- ing with junior exploration companies to identify and develop mining districts with significant exploration potential that is expected to grow our net asset value per share," said David Garofalo, Goldcorp President and CEO. "Coffee is located within a politically stable jurisdiction and provides us with an oppor- tunity to add high quality ounces to our development pipeline, at low all-in sustaining costs. With our strong financial position and mine construction expertise, we see significant potential to deliver value for all partners and stakeholders. We are com- mitted to responsible, sustainable mining and will ensure this project is built to create lasting positive benefits for local First Nations and communities." The arrangement has been unanimously approved by the boards of directors of Goldcorp and Kaminak and will be subject to, among other things, the favourable vote of 66 2/3% of the holders of Kaminak shares and Kaminak options. Closing of the transaction is expected to occur no later than August 15, 2016. n Gold pour at Goldcorp's Porcupine gold mine near Timmins, Ontario. Photo courtesy Goldcorp Inc.