Goldcorp expects to close Pueblo Viejo finance facility by March
25 Jan 2010
Barrick Gold, the world's biggest gold miner by market capitalisation, and Goldcorp, the second largest gold miner, expect to finalise a $1-billion finance facility for their joint project at Pueblo Viejo in the Dominican Republic by March this year.
Barrick owns 60 per cent of the $2.7-billion project and Goldcorp owns the balance.
The companies had said last year that the finance facility would be in place by the end of 2009, but the process is taking longer than expected, Goldcorp CEO Chuck Jeannes said at an investment conference in Whistler, British Columbia, on Friday.
Approximately $700-million of the $1-billion is with the organisations like the Inter-American Development Bank and Export Development Canada, which require more time to complete their internal processes.
''We think it's important to deal with those agencies because of the political risk coverage that they provide, and the commercial banks certainly like them being there, but its taken longer than we expected,'' Jeannes said.
''But we just heard in the last couple of days that there has been some breakthroughs and we think that first quarter closing is very realistic,'' he added.
