Andean Resources accepts bid for Goldcorp of $ 3,400 million
By Ray Give them
CANBERRA (Dow Jones) - One of the largest gold prospecting the world, the Australian Andean Resources Ltd., has become the object of a bidding war between two giants of Vancouver-based gold. Andean
soared to a level of global prominence in the sector over the past two years thanks to rapid development of its gold project in high purity and low cost in Argentina, Black Hill, which contains an estimated resource of 2.1 million ounces of gold and 20.6 million ounces of silver
mining feasibility study, published by Andean to Black Mountain in early July, highlights the robust nature of the project, with an initial annual production of 285,000 ounces of gold at average cash cost of U.S. $ 60 ounce, including by-product credits for silver, and the current price of gold in sight of U.S. $ 1,250 an ounce. Andean expects to reach total production in this project, valued at U.S. $ 275 million since June 2012.
and Andean Goldcorp Inc. said Friday it reached an agreement that the first buy all the shares of Andean through a combination of cash and shares totaling C $ 3,600 million (U.S. $ 3,400 million). Under the terms of this negotiation, the Andean common stock will be exchanged for 0.14 shares of Goldcorp, or a cash payment of C $ 6.50 per share, subject to consideration effective maximum C $ 1,000 million.
Eldorado Gold Corp. on Friday confirmed earlier Andean contacted with a proposal "attractive" partnership to create what would be the gold producer's fastest growing and lowest cost in the world.
Goldcorp's offer represents a premium of 35% over the closing price on September 2 Andean shares that are traded in Toronto and 56% above the weighted average price 20 days on the Toronto Stock Exchange .
Andean Resources shares rose on Friday by 30.8% in the stock exchange in Australia.
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