Gold miner Goldcorp has announced its intentions to purchase Probe Mines, which has interests in the Chapleau area, for $526 million.
Under the agreement, Goldcorp will acquire all outstanding shares of Probe, while Probe shareholders will receive shares in a newly formed company, New Probe.
Goldcorp currently owns 9.3 per cent of Probe, and will offer 0.1755 of a Goldcorp share to Probe shareholders.
Probe Mines’ key asset is the Borden Gold project, located on 786 kilometres of exploration ground near Chapleau. The company also has a 100 per cent interest in the Black Creek chromite deposit located in the Ring of Fire.
The Borden Gold discovery, which was made in 2010, is located in a deposit not known for hosting gold, and is considered a promising find. The Ontario Prospector’s Association recognized Probe for the discovery with the Ontario Prospector Award in November 2013.
In December 2014, Probe president and CEO Dr. David Palmer earned the Bill Dennis Award for a Canadian mineral discovery from the Prospectors and Developers Association of Canada.
"Over the past four years Borden has grown into what is widely considered to be one of the best development assets in the industry and we are proud to have been part of this story with our shareholders,” Palmer said in a news release.
“This acquisition
represents not only a validation of the project and its value, but also an
opportunity for shareholders to participate in future success with one of the
industry's most respected gold producers, Goldcorp, as well as an experienced
and committed team of explorers in New Probe,” he added. “We are grateful for
all of the support and loyalty from our shareholders and look forward to
commencing the next phase together."
The transaction is subject to approval by Probe shareholders, court approval
and other customary conditions. Full details of the transaction will be set out
in Probe's information circular, which will be mailed to shareholders in
mid-February.
The transaction is expected to close at the end of the first quarter 2015.
