Canadian gold group Goldcorp announced on January 12 the sale of its Los Filos gold mine, located in Mexico, to its compatriot Leagold for $438 million. 

Under the agreement, Goldcorp will receive $279 million in cash, plus $71 million in Leagold shares, representing 30% of its capital. Goldcorp plans to obtain a tax refund of about $88 million.

In production since January 2008, the Los Filos mine, located in the state of Guerrero, 230 kilometers (km) south of Mexico, generated 272,900 ounces (oz) of gold in 2015. The mine contains known gold reserves estimated at little more than 1.4 million oz, plus 7.8 million oz of silver.

Goldcorp said the transaction should be completed this quarter. This sale is part of Goldcorp’s strategy to refocus its activities on its most profitable mines.

The group operates nine other gold mines in Canada, Mexico, Central and South America.

Goldcorp also recently announced the sale of its Cerro Blanco (gold and silver) mining project in Guatemala to the Canadian group Bluestone Resources.

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