Goldcorp To Sell Camino Rojo Oxide Project In Mexico For Stake In Orla Mining

(RTTNews) - Canadian gold producer Goldcorp Inc. (GG, G.TO) announced Wednesday that the Company has entered an agreement with Orla Mining Limited, pursuant to which it has agreed to sell its 100% interest in the Camino Rojo oxide project, located in Zacatecas, Mexico.

Under the deal terms, Goldcorp will receive 19.9% of the issued and outstanding common shares of Orla, and a 2% Net Smelter Return royalty on revenues from all metal production from the project, with the exception of metals produced under a joint venture with Orla. It will also have an option to acquire up to a 70% interest in future sulphide projects, and the right to nominate a director to Orla's Board for as long as Goldcorp's equity ownership position is greater than 10%.

The transaction is subject to customary closing conditions and is expected to close in the second half of 2017.