Glamis Gold Ltd. Announces Plan of Arrangement with Goldcorp Inc.

Strategic Insights -

Glamis Gold Ltd. (TSX:GLG)(NYSE:GLG), a premier intermediate gold producer, has announced a significant development in its operations. The company has commenced mailing the meeting notice and information circular for a special meeting of shareholders to consider the Plan of Arrangement with Goldcorp Inc. (TSX:G)(NYSE:GG). This proposed transaction is expected to create the world's premier gold producer, with low cash costs, unhedged gold production growth, and high-quality reserves in the Americas.

Key Takeaways:

  • The proposed transaction involves a Plan of Arrangement between Glamis Gold Ltd. and Goldcorp Inc., which will result in the creation of the world's premier gold producer.
  • Under the terms of the Plan of Arrangement, shareholders of Glamis will receive 1.69 common shares of Goldcorp and Cdn$0.0001 in cash for each Glamis share held.
  • The transaction is expected to close in November 2006, subject to a two-thirds majority vote by Glamis shareholders at the special meeting.
  • The Company has released its 2006 third-quarter results before the opening of markets on Tuesday, October 24, 2006, and will host a conference call at 3:00 p.m. Eastern to discuss the latest financial and operating results.
  • Glamis is a premier intermediate gold producer with low-cost mines and development projects in Nevada, Mexico, and Central America, with plans to grow to over 700,000 ounces of gold production by 2007.
  • The Company's gold production remains 100 percent unhedged, providing a significant advantage in the industry.

Statistics:

  • The proposed transaction involves the exchange of 1.69 common shares of Goldcorp for each Glamis share held, along with Cdn$0.0001 in cash.
  • The transaction is expected to result in the creation of the world's premier gold producer, with low cash costs, unhedged gold production growth, and high-quality reserves in the Americas.
  • The Company has a significant presence in Nevada, Mexico, and Central America, with a focus on low-cost gold production.
  • Glamis' gold production is expected to grow to over 700,000 ounces by 2007, with a 100 percent unhedged production profile.

Sources:

  • "Glamis Gold Ltd. commences mailing of meeting notice and information circular for special meeting of shareholders to consider Plan of Arrangement with Goldcorp Inc.", CCNMatthews via COMTEX, October 3, 2006.
  • "Glamis Gold Ltd. announces the release of its 2006 third quarter results and conference call details", CCNMatthews via COMTEX, October 3, 2006.
  • "SmarTrend Alert: DOWNTREND on GG @ $25.62 on 09-11-2006", Comtex News Network, Inc., September 29, 2006.
  • "SmarTrend Alert: DOWNTREND on GLG @ $35.41 on 08-18-2006", Comtex News Network, Inc., September 29, 2006.