Goldcorp Inc. (GG) will purchase Andean Resources Limited (AND) for about C$3.6 billion ($3.4 billion).
Andean's principal asset is its Cerro Negro gold project in Argentina, the companies said in a statement. Cerro Negro currently has reported indicated resources of 2.54 million ounces of gold and 23.56 million ounces of silver.
"This transaction adds another key asset to Goldcorp's peer-leading growth profile and low-cost gold production pipeline," Goldcorp CEO Chuck Jeannes said.
Each common share of Andean can be exchanged for 0.14 common shares of Goldcorp or a cash payment of C$6.50, with an aggregate maximum cash consideration of C$1 billion. Shareholders who do not choose either option will receive Goldcorp shares. The total consideration for the purchase of 100% of Andean's full diluted shares is about C$3.6 billion.