Release

Goldcorp Spends $1 Billion In Barrick Gold Joint Venture

The Canadian gold companies will merge to share proceeds from the Chilean gold belt, a statement released by Gold Corp reveals. The joint venture will see the two companies jointly own property in Maricunga region in Chile, with Gold Corp looking to increase investment in the area. Here’s a closer look at the two companies’ joint venture details.

RDI Initiates Coverage:

Barrick Gold Corporation            
https://ub.rdinvesting.com/news/?ticker=ABX

Goldcorp Incorporation               
https://ub.rdinvesting.com/news/?ticker=GG

Barrick Gold Corporation’s stock earlier today dipped 1.82% to close the day at $18.84. The company had earlier today suffered a setback at Valadero, when one of the pipes carrying gold solutions raptured. There was however no civilian casualty or environmental damages. The news comes almost immediately after the company announced a merger between it and Gold Corp.

Gold Corp agreed to take a 25% stake of Cerro Casale. With Barrick Gold having already both 25% of Kinross Corp, it would mean both Canadian companies would own a 50% stake of the Chilean gold belt. Barrick went on to state that the agreement would allow them to direct capital elsewhere in their portfolio. This would in turn ensure investors’ options are expanded, especially with the largest undeveloped gold and copper deposits the world over.

Access RDI’s Barrick Gold Research Report at:
https://ub.rdinvesting.com/news/?ticker=ABX

Goldcorp ended the day on a low, with its stock dipping 1.68% to trade at $14.66. Gold Corp and Exeter Resource Corporation had earlier announced plans for Gold Corp to acquire Exeter by way of mutual agreement. The takeover would involve God Corp assuming control of all issued and outstanding shares.

The total considerations offered for all outstanding Exeter shares would be approximately $247 million. Each of the common Exeter shares outstanding would be exchanged for a 0.12 in common stock of Goldcorp. Goldcorp also went on to form a joint venture with Barrick Gold. The shares are expected to face stabilization difficulties amid competition from Yamana Gold and IAMGOLD Corp.

Access RDI’s Goldcorp Research Report at:
https://ub.rdinvesting.com/news/?ticker=GG

Our Actionable Research on Barrick Gold Corporation (NYSE:ABX) and Goldcorp Incorporation (NASDAQ:GG) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Nadia Noorani, CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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