Canadian companies fighting to control rich gold and silver project in Patagonia

Monday, September 6th 2010 - 04:49 UTC

Full article 6 comments

The Cerro Negro prospect in Santa Cruz province, where the powerful Kirchner couple begun their political career

Rival Canadian gold mining companies Goldcorp and Eldorado have locked horns in a fight to buy up Andean Resources Ltd.

Eldorado moved first, offering 3.2 billion US dollars for the Australian company early on Friday.

But Eldorado was trying to pre-empt Goldcorp, who immediately announced a 3.4 billion USD offer that had already been privately agreed with Andean's board.

The target company owns the valuable Cerro Negro gold project in Argentina.

Andean, which is listed in Sydney, saw its share price jump 31% on the news of Eldorado's bid to 5.80 USD, before trading in the company had to be suspended.

Goldcorp's higher bid, which - like Eldorado's - is being offered in exchange for its own stock, values the company at the equivalent of 5.90 USD per share.

Goldcorp said that its offer had already been unanimously approved by both its and Andean's boards, and could be consummated by early next year at the latest.

The Cerro Negro gold prospecting project in Argentina's Patagonian province of Santa Cruz has yielded impressive results, with reported indicated resources of 2.54 million ounces of gold and 23.56 million ounces of silver.

Categories: Investments, Argentina.

Tags: Argentina, Cerro Negro, gold, Patagonia.

Financial Tags: ELD, G.

Top Comments

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avargas2001
I think this two mining companies should be bared from buying in Argentina, did we learn anything from what Canadian mining companies did to natice Canadians and their waters and forest ? what a joke, let them in a slap them both with a 80% tax fee.
Sep 07th, 2010 - 07:52 pm 0
jerry
Now I understand why writers call you “gassy”!
Sep 07th, 2010 - 09:18 pm 0
avargas2001
no retard likes the true, and #2 you are not an exemption, I bid anythig you are white and could careless what Canadian did to natives and their drinking waters, I think with an 80% tax fee we can fix whatever pollution they create, democrzy is wonderfull, english companies in islas Malvinas and Canadian corporations should be meassured with the same stick, and be forced to pay tax fees that fix the damages they create to the environment.
Sep 08th, 2010 - 04:13 pm 0

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