Goldcorp closes deal to buy Kaminak Gold Corporation

Vancouver-based Goldcorp Inc., one of the world's largest producers of gold, has finalized its deal to buy the KaminakGold Corp. and theCoffee project near Dawson City.

Under the agreement,first announced last month,Goldcorp acquired all the outstanding shares of the junior mining companyfor about $520 million, or$2.62 per share.

• Goldcorp's plan to buy Kaminak 'great news for the Yukon'

"With a large, geologically prospective land package in a mining friendly jurisdiction, the Coffee project has the potential to grow into a camp," said GoldcorpCEO David Garofalo in a statement.

"Kaminak has done an excellent job engaging with First Nations throughout the initial exploration phases, which will serve as a solid foundation for us to build upon as the project enters the next phase of development."

The deal has beenlauded by many in Yukon, who believe a major player like Goldcorpwill ensure the project is developed.

Kaminak has saidthe10-year Coffeeproject would generate more than $2 billion in gross revenues, and employ close to 500 people.

The junior mining company said it would havepermittingapplications for the proposedmine ready to submit to theYukon Environmental andSocio-economicAssessment Board (YESAB)this summer.

The goal isto beginconstruction in 2018.