UPDATE 1-Silver Standard to buy Nevada mine from Goldcorp, Barrick
(Adds analyst comments, background, share price moves)
By Euan Rocha
TORONTO Feb 4 (Reuters) - Silver Standard Resources Inc said on Tuesday it will buy the Marigold mine in Nevada for $275 million in cash from joint owners Goldcorp Inc and Barrick Gold in a move aimed at its boosting its gold exposure.
Vancouver-based Silver Standard, which owns the Pirquitas silver mine in Argentina, said the transaction adds an operating mine in a well-established, low-risk mining jurisdiction to its asset base.
Marigold, an open-pit gold mine that has been in production since 1988, is being sold by Barrick and Goldcorp as the two miners trim their portfolios and shed some higher cost assets.
Analysts said the deal will benefit Barrick and Goldcorp, Canada's No. 1 and No. 2 gold producers.
"We view the transaction to be positive given the attractive price received for the asset relative to our estimate," Barclays analyst Farooq Hamed wrote in a note to clients, adding that he had valued Marigold at about $120 million.
Hamed said Goldcorp may use some of the proceeds to help fund its C$2.6 billion ($2.3 billion) hostile bid for Osisko Mining Corp, or to pay down some of its convertible senior notes that come due later this year.
Analysts were more skeptical about the merits of the deal for Silver Standard and shares of the company fell 4.9 percent to C$8.13 in early trading on the Toronto Stock Exchange. Continued...