Canadian gold mining giant Goldcorp Inc is set to sell its entire 26-per cent stake in US precious metals miner Tahoe Resources Inc for just under C$1 billion ($812 million) through a secondary offering.
Goldcorp and Tahoe have entered into a deal with GMP Securities LP and BMO Capital Markets to act as joint bookrunners for the sale of over 58 million Tahoe shares at C$17.20 per share to net C$998.5 million.
The offer price is a seven-per cent discount to Tahoe's stock price of C$18.49 at the close of trading in Toronto on Monday, prior to Goldcorp's announcement.
Goldcorp president and CEO Chuck Jeannes said in a statement, ''Divesting non-core assets has been instrumental to Goldcorp's growth and consistently sound financial position, and the sale of the Tahoe position supports that strategy.''
''With our gold production to date tracking well toward 2015 guidance, Goldcorp is positioned for growing free cash flow and financial flexibility,'' Jeannes added.
Vancouver-based Goldcorp is one of the world's leading producers of the yellow metal. Its low-cost production facilities are located in Canada, Mexico, Central and South America.
The transaction is expected to close by 30 June 2015, subject to customary closing conditions including receipt of all necessary approvals.
The gold miner recently confirmed its 2015 production guidance of between 3.3 and 3.6 million gold ounces at all in sustaining costs of between $875 and $950 an ounce, driven primarily by new contributions from its Cerro Negro and Eleonore operations.
Nevada-based Tahoe's premier asset is its world-class Escobal silver mine in Guatemala, which it bought from Goldcorp in 2010. Earlier this year, Tahoe acquired Canadian rival Rio Alto for C$1.3 billion)
(See: Tahoe Resources buys rival Rio Alto for C$1.3-bn)