Goldcorp Inc. (GG: Quote,G.TO: Quote) on Tuesday announced that Ontario Court Justice Herman Wilton-Siegel has dismissed the claims of Barrick Gold Corp.(ABX: Quote,ABX.TO: Quote) seeking to declare unlawful and ineffective the transactions announced by Goldcorp and New Gold Inc. (NGD: Quote,NGD.TO: Quote) on January 7, 2010 with respect to the acquisition of the El Morro project in Chile.
Goldcorp said it had acquired 70% of the El Morro project from a subsidiary of New Gold, which acquired the El Morro project from Xstrata pursuant to the exercise of a right of first refusal. The company said the right of first refusal came into effect on October 12, 2009 when Barrick entered into an agreement with Xstrata to acquire Xstrata's 70% interest in the El Morro project. New Gold owns 30% of the project.
"We are pleased that the court has confirmed our position that our acquisition of El Morro was completely proper and consistent with the relevant agreements and Chilean law and that Goldcorp's 70% ownership share of the project has now been clarified for our shareholders," said Chuck Jeannes, Goldcorp President and Chief Executive Officer.
Previously, the company said El Morro site development and construction activities had been suspended since April 30, 2012 pending the correction by the Chilean environmental permitting authority or the Servicio de Evaluación Ambiental, or SEA of certain deficiencies specifically identified by a decision of the Antofogasta Court of Appeals.
On June 22, 2012, the SEA initiated the administrative process to address the issues identified by the Court, the company said.
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by RTT Staff Writer
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