Prior to announcing its takeover bid for Placer Dome Inc. in October 2005, Barrick Gold Corporation entered into an agreement with Goldcorp Inc. to transfer certain assets of Placer Dome to Goldcorp following the successful completion of the takeover bid. The takeover bid expired in February 2006, and by early March, Barrick acquired 100 per cent of Placer Dome. On May 12, 2006, Barrick completed the sale to Goldcorp of all of Placer Dome's mining operations and exploration properties in Canada, Placer Dome's interest in the La Coipa mine in Chile and 40 per cent of Placer Dome's interest in the Pueblo Viejo project in the Dominican Republic, as well as certain other interests. The purchase price was approximately US$1.6 billion in cash.
Prior to completing the sale to Goldcorp, Barrick and Placer Dome were amalgamated by way of a vertical, short-form amalgamation, and Barrick completed a reorganization of the Placer Dome assets to facilitate the transaction with Goldcorp. The amalgamation allowed Barrick to utilize the tax cost bump provided for in the Income Tax Act to increase the adjusted cost base of the shares of Placer Dome's directly owned subsidiary corporations, including the subsidiary sold to Goldcorp.
Barrick was represented in-house by Brad Doores, vice-president and assistant general counsel, and Faith Teo, senior counsel and assistant secretary, and also by Davies Ward Phillips & Vineberg LLP, with a team that included Kevin Thomson, Lisa Damiani, Richard Fridman and Brendan Cahill (corporate), Geoffrey Turner, Raj Juneja, Peter Glicklich and Scott Semer (tax) and Mark Katz (antitrust).
Goldcorp was represented by Cassels Brock & Blackwell LLP, with a team that included Paul Stein and Mark Bennett (securities, mining), Ann Watterworth and Nia Drakos (corporate), Bruce Bell (financial services), Lorne Saltman (tax) and Mark Nicholson and Chris Hersh (antitrust).