NEWS RELEASE: Goldcorp expands Porcupine district with acquisition of Probe Mines Limited

VANCOUVER, Jan. 19, 2015 /CNW/ – GOLDCORP INC. (TSX: G, NYSE: GG) and Probe Mines Limited (“Probe”) (TSX-V: PRB) today announced an agreement whereby Goldcorp will acquire, through a friendly plan of arrangement (the “Arrangement”), all the outstanding shares of Probe. The total consideration for the purchase is approximately C$526 million.

Under the Arrangement, each common share of Probe not owned by Goldcorp will be exchanged for 0.1755 common shares of Goldcorp. Goldcorp currently owns 8.4 million shares of Probe representing 9.3% of the basic shares outstanding. Based on the closing price of Goldcorp’s common shares on the TSX on January 16, 2015, the transaction values each Probe share at C$5.00. The consideration received by Probe shareholders represents a 49% premium to the closing price of Probe on January 16, 2015. The number of Goldcorp shares to be issued will be approximately 17 million based on the issued and outstanding shares as of the announcement date, but will be subject to adjustment depending on the number of options and warrants exercised under the Arrangement. The transaction is expected to close in late March, 2015.

In addition to the Goldcorp shares, shareholders of Probe will receive an interest in a new exploration company (“New Probe”) containing Probe’s mineral properties in the Ring of Fire in Northern Ontario, as well as C$15 million in cash and certain other assets currently owned by Probe. Goldcorp will own approximately 9.3% of New Probe following completion of the transaction and looks forward to supporting New Probe in the execution of its business plan.

Read more

Ian Telfer (Born 1946) – 2015 Canadian Mining Hall of Fame Inductee

The Canadian Mining Hall of Fame was conceived by the late Maurice R. Brown, former editor and publisher of The Northern Miner, as a way to recognize and honour the legendary mine finders and builders of a great Canadian industry. The Hall was established in 1988. For more information about the extraordinary individuals who have been inducted into the Hall of Fame, please go to their home website:

Ian Telfer earned his reputation as a financially astute and visionary mining entrepreneur by building a series of companies through timely acquisitions and value-driven mergers.

The companies that he founded or led — TVX Gold, Wheaton River (later merged with Goldcorp), Silver Wheaton, Terrane Minerals and Uranium One, among others — reached a combined market capitalization of more than $50 billion at their peak. Telfer’s greatest accomplishment began modestly in 2001, when he saw low gold prices as an opportunity to acquire Wheaton River Minerals and leverage its treasury to buy producing gold mines at bargain prices.

The strategy was so successful that Wheaton River was soon able to execute a friendly merger with established miner Goldcorp. With Telfer at the helm, Goldcorp grew through subsequent mergers and acquisitions to become a world-class gold mining company. This video was produced by PENDA Productions, a full service production company specializing in Corporate Communications with a focus on Corporate Responsibility.

Born in Oxford, England, Telfer was raised in Canada, and holds a BA from the University of Toronto and an MBA from the University of Ottawa. He worked as an accountant for Hudson’s Bay Mining and Smelting before becoming a founding partner of TVX in 1983. Telfer’s talents came to industry attention as TXV grew into a global gold-miner from an initial base in Brazil.

Read more

Goldcorp chairman Ian Telfer reflects on his career as he accepts prestigious award – by Peter Koven (National Post – January 15, 2015)

The National Post is Canada’s second largest national paper.

Ian Telfer is about to accept a lifetime achievement award, but he has no intention of slowing down. The 68-year-old entrepreneur and chairman of Goldcorp Inc. will be inducted into the Canadian Mining Hall of Fame Thursday night in recognition of more than three decades of success in the industry. Mr. Telfer recently overcame a cancer scare, and is now brimming with energy and excitement as he plots Goldcorp’s future. He sat down with the Financial Post’s Peter Koven to discuss his career, his company and the gold business.

Q How did Goldcorp become the world’s biggest gold company?

A I think in all industries, there is a time where you can create something meaningful. There was a time to create Microsoft, there was a time to create Apple, and there was a time to create Goldcorp. And we just happened to be doing it at the right time. At the bottom of the last cycle, when it was very bleak and gold was US$250, Frank Giustra and I said we should get back into gold. We had never worked together. We just believed that the price of gold was going to go up and it was going to go up fast.

If we were going to participate in this, we’d better get out there and acquire gold assets as fast as we can. Over a five-year period, virtually every gold asset that came available went to auction, and we outbid everybody else because we had a more passionate view of what the gold price was going to do. And we happened to be right.

Read more

Inglorious writedowns: Gold sector’s bad bets wiping out lifetime earnings — and investor confidence – by Peter Koven (National Post – January 14, 2015)

The National Post is Canada’s second largest national paper.

TORONTO – Goldcorp Inc. could soon join an inglorious group: large gold miners that have a net loss to show for their entire history as corporate entities.

The Vancouver-based company warned this week that it expects to record an impairment charge of US$2.3 billion to US$2.7 billion on its Cerro Negro mine in Argentina. Given that Goldcorp’s retained earnings were US$2.2 billion as of Sept. 30, they may be completely wiped out in its next quarterly report.

That would not be unusual in the gold industry, where writedowns have destroyed historic profits in recent years. Barrick Gold Corp. has retained earnings of negative US$7.8 billion, while Kinross Gold Corp. is at minus US$8.5 billion. AngloGold Ashanti Ltd. has a US$4 billion historic loss, while Agnico Eagle Mines Ltd. has a slimmer loss of US$740 million.

These companies have highly profitable operations that continue to perform well in a tough gold market. But they paid the price for taking risky bets that backfired and crushed shareholder value when gold prices dropped.

“It matters when you write off more than you ever earned,” said John Tumazos, an independent analyst. “The message is these particular companies were reckless and irresponsible with their shareholders’ capital.”

Read more

A female face on aboriginal recruitment [Goldcorp Eléonore gold mine] – by Daniel Bland (Winnipeg Free Press – January 7, 2015)

When Yvette Mattawashish was eight, she remembers playing in the ditches along the roads of her native Mistissini, a James Bay Cree reserve 900 kilometres northeast of Ottawa. “I used to crawl in the tunnels they’d dig to put in the big water pipes and culverts,” she says laughing now at the memory. “I’d curl right up inside them.”

Today, at 22, Yvette is one of only three James Bay Cree women trained and employed as an underground development miner. And while the path she took to get there is typical in many ways to that of other young aboriginal women in the remote north, it is also extraordinary.

According to a report by the Conference Board of Canada, the annual gross domestic product of mining in Canada’s north, which was $4.4 billion in 2011, is expected to reach $8.5 billion in 2020. A lack of infrastructure in roads and energy is frequently mentioned as the major obstacle to development in the remote north.

Given the demographics of most First Nation communities — a very young population most of whom have not completed high school — effective strategies to engage aboriginal leadership and train local aboriginals to do jobs mines will require may prove to be every bit as important as building a road to access a mine or a deep water port to ship ore. Particularly crucial are efforts to target aboriginal women like Yvette.

Read more

Goldcorp is Losinging its Social Licence to Operate in Guatemala – by Marilyn Scales

Marilyn Scales is a field editor for the Canadian Mining Journal, Canada’s first mining publication. She is one of Canada’s most senior mining commentators.

Mining companies often speak of having a “social licence” to operate. This reflects the willingness of local communities to support their endeavours. The more the miner and the indigenous people talk, the better their understanding and ability to accommodate one another.

What sounds straightforward is often complicated by unrealistic expectations, earlier history, cultural rigidity and interference by third parties.

The latest company on the verge of losing its social licence is Vancouver’s Goldcorp, that operates the Marlin gold mine in Guatemala. The most recent report to examine Goldcorp’s record there was commissioned by the company in response to charges of human rights violations at the Marlin mine. The report concluded that the company had failed to respect the right of indigenous peoples in that country, but also had brought jobs, healthcare and education to the impoverished western highlands region. Goldcorp further insists that allegations of environmental problems are unfounded.

Read more