Goldcorp sells San Dimas gold-silver mine to Mala Noche for $500 million

02 Jun 2010

The world's fastes-growing gold producer Goldcorp Inc, and also the world's lowest-cost producer, today said that it is selling its San Dimas gold-silver mine in Mexico to Mala Noche Resources for $500 million.

San Dimas mines consist of three underground gold-silver mines located in Mexico's San Dimas district, on the border of Durango and Sinaloa states. San Dimas produced 113,000 ounces of gold and 5.1 million ounces of silver in 2009.

As of 31 December 2009, the estimated total proven and probable reserves at San Dimas was 5.6 million tonnes of 4.80 g Au/t grade and 339 g Ag/t for 860,000 ounces of gold and 61 million ounces of silver.

Vancouver, Canada-based Goldcorp said that it will receive $500 million, consisting of $275 million in cash, $175 million of Mala Noche common shares and a $50 million promissory note payable over five years at 6 per cent interest per annum.

Post sale, Goldcorp's stake in Mala Noche is expected to be approximately 30 per cent.

Mala Noche Resources also based in Vancouver, Canada is a Mexico focussed acquirer, explorer and developer of minerals in Mexico. It holds stakes in the Ventanas for gold, silver, and polymetallic deposits located in Durango Province of Mexico.