Goldcorp plans to sell its Cerro Blanco gold-silver project, located in Guatemala, to Bluestone Resources Inc. Goldcorp will receive consideration at closing of $18 million in cash, a 1% Net Smelter Return royalty on production, and a 9.9% interest in Bluestone. Bluestone will pay Goldcorp an additional $15 million once Cerro Blanco achieves commercial production.
In addition, Goldcorp has granted Bluestone a right of first refusal with respect to certain assets and equipment at the Marlin mine, also located in Guatemala. The Marlin mine will continue reclamation and revegetation activities over the next three years, followed by ongoing monitoring and maintenance activities as planned. The last ore production is set to be processed in early 2017.
The Cerro Blanco transaction is subject to financing and other customary closing conditions and is expected to close in the first quarter of 2017.