October 24, 2016
Tahoe Resources Inc. announced that the Company has acquired from Goldcorp Inc. for $12.5 million in cash Goldcorp's 2% net smelter return ("NSR") royalty related to production at Tahoe's 100%-owned Bell Creek Mine. The parties have also signed a letter of intent to increase Tahoe's ownership interest in the Whitney Joint Venture ("Whitney JV") to 100%, with Goldcorp's current interest of approximately 30% being reduced to a 2% NSR royalty. Under the terms of the letter of intent, Tahoe will assume all closure liabilities with respect to the Whitney JV properties, including historic liabilities not previously assumed by the Whitney JV. These historic liabilities are currently estimated by Tahoe to total approximately $12.0 million, an amount that Tahoe believes could be reduced through the development and operation of an open-pit mine. The Whitney JV transaction is subject to execution of a definitive agreement and to the approval of Tahoe's Board of Directors.