UPDATE 1-Goldcorp to buy Kaminak Gold for C$520 mln

Thu May 12, 2016 9:08am EDT
 
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(Adds details, shares)

May 12 (Reuters) - Goldcorp Inc said it would buy Kaminak Gold Corp for about C$520 million ($406 million), giving it the Coffee gold project south of Dawson City, Yukon.

Vancouver-based Goldcorp will offer 0.10896 of a share for each Kaminak share, or C$2.62 based on Goldcorp's Wednesday close.

The offer price represents a premium of 32.3 percent to Kaminak's Wednesday close.

Goldcorp's U.S.-listed shares were up 1.7 percent at $18.43 in premarket trading on Thursday.

Kaminak's key asset is the Coffee gold project, which has total indicated gold mineral resources of 3 million ounces.

Goldcorp said the board of directors of both the companies have unanimously approved the deal.

RBC Capital Markets and Fort Capital Partners acted as financial advisers to Goldcorp and Cassels Brock & Blackwell LLP provided legal advice. ($1 = C$1.28) (Reporting by Anet Josline Pinto in Bengaluru; Editing by Shounak Dasgupta)