Goldcorp To Sell Los Filos Mine In Mexico To Leagold - Quick Facts

(RTTNews) - Goldcorp Inc. (G.TO, GG) announced the company has entered into a share purchase agreement with Leagold Mining Corp. (LMC_H.V), pursuant to which it has agreed to sell its Los Filos Mine in Mexico to Leagold. Goldcorp will receive estimated consideration of $438 million, consisting of $279 million in cash, $71 million in Leagold common shares, and retain certain tax receivables of approximately $88 million. The common shares issued to Goldcorp as consideration are expected to represent approximately 30% of the issued and outstanding shares of Leagold.

"The divestiture of Los Filos is consistent with our strategy of focusing on our core camps to drive increasing net asset value per share," said David Garofalo, President and CEO of Goldcorp.

By closing of the transaction, Goldcorp expects to recognize a reversal of a 2015 impairment in mining interests at Los Filos of approximately $30 to $60 million on a pre-tax basis.