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Goldcorp chases off gold mining rival

Goldcorp is buying junior miner Gold Eagle Mines Ltd. for $1.5 billion to shore up its land holdings in the Red Lake mining camp in northwestern Ontario. The deal announced July 31 will see Gold Eagle investors receive $6.80 in cash and 0.
Northern Ontario Business Staff

Goldcorp is buying junior miner Gold Eagle Mines Ltd. for $1.5 billion to shore up its land holdings in the Red Lake mining camp in northwestern Ontario.

The deal announced July 31 will see Gold Eagle investors receive $6.80 in cash and 0.146 Goldcorp share for each share they hold.

Gold Eagle has been extensively drilling on its high grade Bruce Channel discovery for the last two years and was preparing to sink an exploration shaft this month. The project is adjacent to Goldcorp's Red Lake mining complex, comprising the Red Lake and Campbell mines.

Goldcorp acted quickly after its rival Agnico-Eagle Mines Ltd made a surprise $50-million private placement purchase of Gold Eagle stock in June, snaring a five-per-cent share in the junior miner.