TORONTO (miningweekly.com) – Canada's second-biggest gold-miner, Goldcorp, has agreed to buy explorer Canplats Resources, which owns the Camino Rojo project, 50 km from Goldcorp's big new Penasquito mine, in Mexico.

The move is part of a plan to create a “network” of low-cost satellite mines around the huge Penasquito operation, Goldcorp CEO Chuck Jeannes said on Monday.

By acquiring Camino Rojo, the gold-miner will also increase its land holdings in the district to more than 4 600 km², he said.

Goldcorp will pay 0,074 of its own shares for every Canplats share, in a friendly plan of arrangement transaction.

The ratio implies a price of about C$3,42 a share for Canplats shareholders, based on closing prices on November 13, the companies said.

Current Canplats shareholders will also get a 90,1% interest in a new exploration company that will be formed to hold Canplats' exploration properties in Mexico, other than the flagship Camino Rojo asset.

Goldcorp will retain the other 9,9% in the new company.

Including the shares in the new exploration firm, the combined price being offered per Canplats share is estimated at around C$3,60, which represents a premium of about 41% based on closing prices on Friday.

The Camino Rojo project spans 3 389 km2 and includes the Represa deposit, which has reported measured and indicated resources of 3,45-million gold ounces and 60,71-million silver ounces, with inferred resources of 555 000 oz of gold and 7,61-million ounces of silver.

"The acquisition of the Camino Rojo Project fits very well with one of our strategic goals of enhancing opportunities in and around our core assets," Jeannes commented.

There is a lot of potential for synergies between Camino Rojo and Penasquito, which shipped its first lead and zinc concentrates this month, he said.

“With the Penasquito mine achieving operational status as expected, we have accelerated our regional exploration and development initiatives in order to leverage our strong presence in this highly prospective district.”

The company is also advancing its Noche Buena project, to the north of Penasquito, Jeannes added.

“We can envision a potential network of low-cost satellite operations that would contribute significantly to Penasquito production over the long term."

The acquisition has the backing of both Goldcorp's and Canplats' boards, but will still need approval by shareholders owning at least two-thirds of Canplats' issued and outstanding shares.

Goldcorp expects to issue about 4,3-million shares in connection with the transaction, which will likely close in January 2010, the firms said.

Shares in Goldcorp rose 1,5% on Monday, to C$46,94 apiece by 14:57 in Toronto. Canplats surged 38% on the news, to C$3,52 a share.

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