The world’s fourth biggest gold miner, Goldcorp, is selling its Camino Rojo gold ad silver project in Mexico to Orla Mining.
Camino Rojo, in Zacatecas state, is located about 50 kilometers from Goldcorp’s flagship Peñasquito mine.
As part of the deal, the Canadian gold producer will receive 19.9% of Orla’s outstanding common shares, as well as a 2% net-smelter-return royalty on revenues from all the project’s metal output.
Goldcorp also gains the option to buy up to a 70% interest in future sulphide projects. It will also have the right to nominate a director to Orla’s board for as long as Goldcorp’s equity ownership position is greater than 10%.
The move adds to the list of assets Goldcorp has been selling off in recent months, as it moves to focus on its profitable core business.
Earlier this year Goldcorp sold the Los Filos gold and silver project in Mexico, as well as the Cerro Blanco gold and silver mine in Guatemala.
Commenting on the deal, Marc Prefontaine, CEO of Orla said:
“We are very excited to now have both Goldcorp and Agnico Eagle as strategic shareholders and partners. They are first class gold companies and their ongoing support will prove invaluable as we advance our asset base,”
The deal with Orla is expected to conclude in the second half of this year.