Goldcorp (NYSE:GG) Pay $3.7-M for Stake in a Newly Formed Explorer

Goldcorp (NYSE:GG) Pay $3.7-M for Stake in a Newly Formed Explorer

Goldcorp (NYSE:GG) Pay $3.7-M for Stake in a Newly Formed Explorer

$GG

Canada’s GoldCorp (NYSE:GG) is investing $3.7-M to acquire a 14% interest in a newly formed Bold exploration company born Thursday from the merger of Matamec, Canada Strategic Metals and Sphinx Resources.

The new explorer, named Quebec Precious Metals Corp. (QPM), will focus on the James Bay area, bordering the provinces of Quebec and Ontario, where it will own three projects until now property of Sphinx.

The new explorer, named Quebec Precious Metals Corp. (QPM), will focus on the James Bay region, in Quebec.

The merger makes of QPM a well-capitalized company with a large land position and significant holdings in the highly prospective Eeyou Istchee James Bay region, Quebec, near Goldcorp’s Éléonore mine, the parties said in a statement.

Goldcorp, the world’s 3rd largest Gold bullion producer by market value, is expected to provide technical expertise and knowledge of the region, which holds high quality early stage exploration gold targets.

The deal provides Canada Strategic and Matamec shareholders with premiums of 41% and 32% respectively to the average price of their shares prior to the announcement.

“QPM, with quality gold exploration assets and a key shareholder, will be in a good position to attract additional growth opportunities,” the companies said.

Quebec Precious Metals’ headquarters will be in Montreal.

Territory to be held by Quebec Precious Metals.

Symbol Last Trade Date Change Open High Low Volume
NYSE:GG 13.66 26 April 2018 -0.29 13.7 14.09 13.31 9,904,000
HefffX-LTN Analysis for GG: Overall Short Intermediate Long
Neutral (0.03) Neutral (0.01) Neutral (0.10) Neutral (-0.01)

Have a terrific weekend.

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