Goldcorp Inc. (USA) (NYSE:GG) said that it has entered into a binding letter of intent with Premier Gold Mines Ltd., under which, it will divest its 40% interest in the South Arturo Mine Project located in Nevada to the latter. The acquisition is expected to close by the end of May 2015.

The South Arturo Mine Project is a joint venture between Goldcorp, which owns and operates 40% of the Project, and Barrick Gold Corporation (USA) (NYSE:ABX), which is a 60% owner of the same.

Pursuant to the terms of the agreement, Premier has agreed to pay Goldcorp $20 million at the deal closure. Goldcorp will also get a 5% interest in the Rahill-Bonanza Joint Venture in Red Lake, subject to Barrick not exercising its right of first refusal in respect of the Project and completion of definitive documentation. Along with the divestiture, Goldcorp has agreed to complete a private placement with Premier worth C$12.5 million, on approval of the Toronto Stock Exchange.    

Recently, Goldcorp completed the earlier announced acquisition of Probe Mines Limited. The primary asset of Probe is a 100%-owned Borden Gold project located near Chapleau in Ontario, about 160 kilometers west of Goldcorp's Porcupine mine. Borden mine is a high-quality deposit, mineable through the traditional underground mining methods.

The Borden Gold project currently has reported underground constrained indicated resources of 1.6 million ounces of gold and inferred resources of 0.4 million ounces of gold at a 2.5 grams per ton (g/t) gold cut-off grade. The company is looking forward to immediately advancing exploration efforts in this area.

Goldcorp, which is among the prominent gold mining companies, along with Newmont Mining Corp (NYSE:NEM) and Kinross Gold (USA) (NYSE:KGC), has the advantage of adding Borden to its asset portfolio due to its proximity to the Porcupine operation, which includes the large milling facility at the Dome complex.