Goldcorp to acquire Canplats Resources in $238M deal to expand Mexican operations

THE CANADIAN PRESS

VANCOUVER, B.C. - Major gold miner Goldcorp Inc. (TSX:G) announced Monday it is acquiring junior miner Canplats Resources Corp. (TSXV:CPQ) in a deal valued at $238 million.

The deal will see Goldcorp assume ownership of Canplats' Camino Rojo project in Mexico, expanding its already extensive operations in that country. Goldcorp already has three mines and two development projects in Mexico.

The news sent Canplats' shares soaring 95 cents or 37.3 per cent to $3.50 in morning trading on the Toronto Stock Exchange. Goldcorp's shares added 52 cents to $46.77.

Each Canplats share will be exchanged for 0.074 of a common Goldcorp share, or the estimated equivalent of $3.42 per share based on Goldcorp's closing share price Friday.

A new exploration company will also be created as part of the deal, with 90.1 per cent of its shares distributed to Canplats' shareholders at a value of 18 cents per share. The combined value of $3.60 per share represents a premium of approximately 41 per cent over Canplats' closing share price on Friday.

The new company will hold $10 million in cash and Canplats' existing interests in precious and base metal projects in Mexico. A 9.9 per cent equity interest in the company will be held by Goldcorp.

The deal is expected to close in January 2010.

"We are extremely pleased to have reached an agreement with one of the world's largest and most respected gold producers," said Gordon Davis, Canplats' chief executive officer.

"The agreement provides our shareholders with immediate value and the prospect for future gains."

The Camino Rojo project, located about 50 kilometres southeast of Goldcorp's existing Penasquito mine, has measured and indicated resources of 3.4 million ounces of gold and 60.7 ounces of silver. Inferred resources total 555,000 ounces of gold and 7.6 million ounces of silver.

"With the Penasquito mine achieving operational status as expected, we have accelerated our regional exploration and development initiatives in order to leverage our strong presence in this highly prospective district," stated Goldcorp president and CEO Chuck Jeannes.

"The Camino Rojo project will benefit from strong synergies with Penasquito in the areas of human talent, infrastructure and stakeholder partnerships. In addition, our total land package in the district will now exceed 4,600 square kilometres, providing an abundance of compelling exploration targets."

Jeannes added that, along with the Noche Buena project, he sees a potential network of low-cost satellite operations that would "contribute significantly to Penasquito production over the long term."

In October, Penasquito produced its first lead and zinc concentrates.

Goldcorp will issue approximately 4.3 million shares in the transaction, which will have a dilutive effect of approximately 0.6 per cent. The transaction is expected to close in January 2010. It is subject to the approval of two-thirds of Canplats securityholders.

Goldcorp is a major gold producer with operations throughout the Americas.