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by Mike Caswell

Goldcorp Inc., responding to a lawsuit it faces in the Supreme Court of British Columbia, denies that it failed to live up to an agreement to sell its Cerro Blanco project in Guatemala. It says that it was always ready to uphold the deal. The problem, according to Goldcorp, is that the buyer was unable to come up with the necessary financing and tried to substantially alter the arrangement.

The dispute centres on the Cerro Blanco project, a relatively small part of Goldcorp's portfolio. The company hinted that it would sell the ground in 2011 and it placed the project on care and maintenance in 2013. At the time it cited low metal prices.

The lawsuit arose on June 24, 2016, when a North Vancouver company called Kaban Resources Inc. claimed to have had a deal for Cerro Blanco that Goldcorp failed to complete. According to Kaban's lawsuit, Goldcorp agreed to sell it the project in an agreement the companies reached on Feb. 3, 2016. Terms called for Kaban to raise $35-million and for Goldcorp to have a 40-per-cent interest in Kaban upon completion. Kaban said that it upheld its end of the deal, arranging financing with Fortuna Silver Mines Inc. According to the suit, Goldcorp tried to change the deal at the last minute, seeking to increase its interest in Kaban to 48.9 per cent. Ultimately the deal did not proceed. Kaban is seeking damages based on a mine value of between $194.9-million (U.S.) and $534-million (U.S.).

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