Goldcorp begins friendly $247 million takeover of Exeter

Goldcorp (TSX:G) (NYSE:GG), the world’s No.3 gold producer by value, has formally began the acquisition of fellow Canadian Exeter Resource (TSX:XRC), one of the several deals announced last month, which included the creation of a partnership with Barrick Gold (TSX, NYSE:ABX) in Chile’s gold belt.

The Vancouver-based miner said Exeter shareholders will be entitled to receive 0.12 of a common share of Goldcorp for each of the junior miner’s share, which represents a premium of 67% based on Goldcorp's and Exeter's closing prices on the Toronto Stock Exchange on March 27, the day prior to the takeover announcement.

The deal puts the value of all Exeter shares at $247 million. Goldcorp says its offer will be open until 5 p.m. EDT on May 26, unless otherwise extended or withdrawn.

Once the acquisition is completed, Goldcorp will inherit Exeter’s Caspiche project in Chile, located about 10 kilometers north of Cerro Casale gold and copper project, which it plans to develop in partnership with Barrick. That project, the company had said, will be merged in their joint venture portfolio.