GOLDCORP INC. (TSX: G, NYSE: GG) today announced that the scheme of arrangement pursuant to which Goldcorp will acquire all of the outstanding shares of Andean Resources Limited (TSX and ASX: AND) has been approved by the Federal Court of Australia.
A copy of the order made by the Court has been lodged with the Australian Securities Commission and the Scheme is now effective.
"Australian Court approval, which follows overwhelming support of the transaction by Andean's shareholders, represents a key milestone for Goldcorp in securing this exceptional project," said Chuck Jeannes, Goldcorp President and Chief Executive Officer. "In Cerro Negro, Goldcorp shareholders can look forward to many years of high-grade gold production at very low cash operating costs following a relatively small capital investment. Just as importantly, the opportunity remains very favorable for significant continued growth of gold resources through expansion of existing deposits and the discovery of additional zones along the strike of the veins. As well, the potential exists for discoveries of new veins within this large, prospective land position. The transition team at Cerro Negro is making excellent progress, and immediately upon closing at the end of this year, we will begin advancing the project toward initial production in 2013."
Andean's principal asset is the 100%-owned Cerro Negro gold project, an advanced-stage, high-grade vein system located in the Santa Cruz province of Argentina. Comprising 215 square kilometers, current reported resources at Cerro Negro do not include drill holes that have been drilled since the last calculation, including drilling in the San Marcos zone, Mariana Norte zone and most importantly, the very high-grade discovery in the Mariana Central zone. The updated resource calculation for Cerro Negro will be available in early February with Goldcorp's annual reserve and resource update and the new feasibility study results will be available by the end of the first quarter of 2011.
Key dates remaining under the timetable as detailed in the Scheme are as follows:
- December 9, 2010 - Andean shares suspended from trading on ASX and TSX following market closes (local time). - December 16, 2010 - Record date for Andean shareholders determining election of cash and shares. - December 30, 2010 - Scheme implementation; consideration payable delivered to Andean shareholders.
Source: Goldcorp Inc.