DJ Xstrata Completes Sale Of Chile’s El Morro Project To New Gold
Source: | Filed in
Metals & Mining | 
Subscribe to Savvy Investor via RSS
2/16/10(Dow Jones Commodities News via Comtex)
Xstrata PLC’s (XTA.LN) Xstrata Copper Chile SA has sold a 70% stake in its El Morro copper-gold project in Chile to Vancouver’s New Gold Inc. ( NGD | Quote | Chart | News | PowerRating, NGD.T) for $463 million, Xstrata Copper reported Tuesday.
New Gold, which already owns 30% of El Morrow, borrowed $463 million from Goldcorp Inc. ( GG | Quote | Chart | News | PowerRating, G.T) to buy the El Morro stake and then sell it back to Goldcorp for $50 million.
In January, Barrick Gold Corp. (ABX, ABX.T) filed a lawsuit in Ontario’s Superior Court of Justice against New Gold, alleging that New Gold failed to lawfully exercise its right of first refusal to acquire a 70% stake in El Morro, and seeking a declaration that the right of first refusal has expired. Barrick is also seeking a declaration that arrangements New Gold recently made with Goldcorp regarding the El Morro deposit are unlawful. Last fall, Barrick offered to buy Xstrata 70% stake in the project.
El Morro is an advanced stage copper-gold project in north-central Chile. It contains proven and probable reserves of 6.7 million ounces of gold and 5.7 billion pounds of copper, with another 2.2 million ounces of gold and 1.0 billion pounds of copper in the measured and indicated resource categories.
Xstrata Copper will continue to have an active presence in Chile through its Lomas Bayas copper mine, Altonorte Metallurgical Complex, 44% interest in the Collahuasi joint venture and the Energia Austral hydropower plant project.
-By Anthony Esposito, Dow Jones Newswires; 56-2-820-4241; anthony.esposito@dowjones.com
(END) Dow Jones Newswires
For full details on New Gold Inc (NGD) NGD. New Gold Inc (NGD) has Short Term PowerRatings at TradingMarkets. Details on New Gold Inc (NGD) Short Term PowerRatings is available at This Link.
For full details on Goldcorp Inc (GG) GG. Goldcorp Inc (GG) has Short Term PowerRatings at TradingMarkets. Details on Goldcorp Inc (GG) Short Term PowerRatings is available at This Link.
