Goldcorp to buy Andean Resources for $3.42 billion

[September 03, 2010]  NEW YORK (AP) --  Canada's Goldcorp Inc. says it has agreed to buy Andean Resources Ltd. for about 3.6 billion Canadian dollars ($3.42 billion).

The acquisition would give the Canadian gold producer access to Andean's Cerro Negro gold project in Argentina, which is said to have a significant amount of gold and silver.

The deal has been approved by both companies' boards. They expect it to close later this year or in early 2011.

Under terms of the deal, each Andean common share will be exchanged for 0.14 Goldcorp shares or a cash payment in the amount of 6.50 Canadian dollars ($6.17) per share.

The maximum cash consideration will be 1 billion Canadian dollars ($948.6 million).

Shareholders can choose stock, cash or a combination of the two.

[Associated Press]

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