Goldcorp offers $526 million for Probe Mines, owner of Borden gold project

Goldcorp Inc. has offered to buy full control of Probe Mines Ltd. and its Borden gold project near Chapleau, Ont., in a friendly takeover valued at $526 million.

Goldcorp currently owns about 9.3 per cent of Probe and is offering 0.1755 of a Goldcorp share for each of the remaining shares. Probe shareholders would also receive shares of a new publicly listed company focused on the Ring of Fire area.

The offer is valued at $5 per Probe share, representing a 49 per cent premium Friday's closing price of $3.36 on the TSX Venture Exchange.

Goldcorp chief executive Chuck Jeannes says the Probe acquisition would secure a high-quality deposit within a core area for the Vancouver-based gold giant.

The Borden deposit is about 160 kilometres west of Goldcorp's Porcupine Mine.

The transaction requires a two-thirds majority vote from Probe shareholders at a special meeting. Goldcorp would receive a $18.4-million termination fee under certain circumstances if the deal doesn't close.