Here is a news release: Maybe that is why it was halted. Format is
not the best.
Regards
Dan
Goldcorp Secured US$60 Million Red Lake Mine Financing
PR Newswire - January 04, 1999 16:21
TORONTO, Jan. 4 /CNW-PRN/ - GOLDCORP INC. (TSE/ME: G.A, G.B; NYSE: GG.A, GG.B) is pleased to
announce today that it has entered into an agreement with a group of three Canadian chartered banks, Bank of
Montreal, The Bank of Nova Scotia and Royal Bank of Canada, pursuant to which the Banks will provide to
Goldcorp a five-year term loan of US$60 million.
The purpose of the term loan is to finance the development of the High Grade Zone at Goldcorp's Red Lake Mine.
As previously reported by Goldcorp, a positive feasibility study on the project dated September 1998 was
completed by Watts, Griffis and McOuat, an independent geological and engineering consulting firm. The feasibility
study indicates that the project has a payback of 17 months with an internal rate of return of 49% based on a gold
price of US$300 per ounce, a recovery rate of 83% and an average cash operating cost of US$88 per ounce.
The interest cost on funds drawn-down under the term loan will be LIBOR plus 2.50%. After final completion of the
development plan, the interest cost will be LIBOR plus an amount ranging between 1.25% and 2.25%, depending
on Goldcorp achieving certain financial tests. In addition, Goldcorp is also required to hedge 450,000 ounces of
gold production from the Wharf Mine over a period of five years.
The term loan and gold production hedging will be secured by, among other things, a floating charge on all of
Goldcorp's assets. After final completion, all security will be released by the Banks. The loan will mature on
December 31, 2003.
The closing of the term loan is subject to the finalization and execution of definitive documentation by Goldcorp and
the Banks, and is expected to be completed during February 1999.
Surface and underground projects are being carried out at the Red Lake Mine as per the development plan. Merit
Consultants International Inc. has been retained to act as Construction Managers for the development. Merit will
provide overall direction for scheduling, cost control and implementation of the development plan.
Tender proposals for the detailed engineering of the processing plant and for the underground development and
construction program have been received from selected consultants and contractors. It is expected that both
contracts will be awarded shortly.
Goldcorp is a North American-based gold producer. In addition to its Red Lake Mine, Goldcorp owns and
operates the Wharf Mine, an open pit gold mine located in the Black Hills of South Dakota, and two industrial
mineral mines located in Saskatchewan and New Brunswick.
SOURCE Goldcorp Inc.
/CONTACT: Robert R. McEwen, Chairman and Chief Executive Officer,
(416) 865-0326, Email: info(at)goldcorp.com/
(G.A. G.B. GG.A GG.B)
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