Glamis Gold Ltd.

Glamis Gold Ltd.

January 07, 2005 09:00 ET

Glamis Gold Commences Formal Bid for Goldcorp




JANUARY 7, 2005 - 09:00 ET

Glamis Gold Commences Formal Bid for Goldcorp

RENO, NEVADA--(CCNMatthews - Jan. 7, 2005) - Glamis Gold Ltd.
(TSX:GLG)(NYSE:GLG) - All amounts in US$

Glamis Gold Ltd. announced that it has filed its formal take-over offer
for all of the common shares of Goldcorp Inc. with securities regulators
in Canada and the United States, and is today commencing the mailing of
its offering circular and related documents to Goldcorp shareholders.

Under the terms of the share exchange offer, which remains open until
9:00 pm EST on February 14, 2005, Glamis has offered Goldcorp
shareholders 0.89 of a Glamis common share for each Goldcorp common
share. The offer values Goldcorp at $17.80 per common share and
represents a premium of 22.6% based on the volume-weighted average
trading price for both companies for the 30 trading days on the New York
Stock Exchange prior to December 16, 2004 - the date Glamis announced
its intention to make this take-over offer.

"With this offer, Goldcorp shareholders will receive both a significant
premium on their investment and the opportunity to participate in a
premier gold producer created by the combination of Glamis and Goldcorp.
The new entity combines the size and market liquidity of a senior
producer with extremely low costs and the growth potential of a mid-tier
company," Kevin McArthur, President and Chief Executive Officer of
Glamis Gold said. "We are offering Goldcorp shareholders a clear
alternative to the Goldcorp/Wheaton River combination - a pure gold
producer, an operations-oriented management team with substantial
mine-building experience, exposure to Glamis' industry-leading growth
profile and an immediate, substantial premium."

Mr. McArthur added, "We were pleased to learn that Goldcorp has decided
to allow its shareholders a choice by making its bid for Wheaton River
conditional on shareholder approval. Based on all of the advantages of a
Glamis-Goldcorp combination, we are confident that the Goldcorp
shareholders will vote to reject the bid for Wheaton River and tender
their shares to the Glamis offer."

Glamis believes that the combination of Glamis and Goldcorp provides
significant benefits:

- Premier Gold Producer. The combined company will create a world-class,
pure gold producer that should attract substantial interest from gold

- Expertise to Unlock Additional Value in Red Lake. Goldcorp's Red Lake
property is one of the premier high-grade gold mines in the world;
however, the full potential of this asset has yet to be realized. Glamis
believes that its experience in mine development and operations will
enable optimization of the operation, resulting in lower unit costs, a
higher production rate and ultimately, an increase in the asset value of
Red Lake.

- Professional, Operations-Oriented Management. Glamis brings to the
combined company a professional, operations-oriented management team
experienced in both acquisitions, and mine development and operations.

- Pure Unhedged Gold Producer. The combined company will remain a pure
gold company, with no base metal exposure or reliance on base metal
credits to achieve low operating costs and no gold hedging.

- Diversified Portfolio of Properties with Long Mine Life. Glamis has
established a diversified portfolio of new low-cost operations. The
combination of its multiple-property portfolio with the primarily
single-property portfolio of Goldcorp will provide diversity of
operating risk that the Goldcorp shareholders currently do not have.

- Outstanding Growth Profile. The combination of expected growth at Red
Lake with Glamis' existing growth projects provides superior
opportunities for enhanced valuations from fully-permitted and financed
growth projects that are already under construction. Additionally, each
of Glamis' mines and Red Lake have excellent prospects for further
discovery and reserve expansion.

- Financial Strength. The combined company will have approximately $500
million in cash and gold bullion with minimal debt. The average annual
cash cost over the next five years is projected to be approximately $120
per ounce.

- Reserves. The combined company will have over 11 million ounces of
proven and probable gold reserves.

The Glamis take-over offer is conditional on not less than 66 2/3% of
the Goldcorp common shares (on a fully diluted basis) being validly
deposited under the offer and not withdrawn, and the previously
announced transaction between Goldcorp and Wheaton River is not approved
by the Goldcorp shareholders and is terminated. The offer is also
subject to Glamis shareholders approving the removal of a restriction on
the number of shares the Company can issue, and various regulatory
approvals. Glamis has received an advance ruling certificate under the
Competition Act (Canada), exempting the take-over offer from the merger
review provisions of the Act.

For further information about the offer, Goldcorp shareholders can
contact Georgeson Shareholder Communications, Inc. at 1-877-288-7946
(toll free in North America).

Glamis Gold Ltd. is a premier intermediate gold producer with low-cost
gold mines and development projects in Nevada, Mexico and Central
America. The Company remains 100 percent unhedged. Glamis' plan and
budget reflects a near tripling of annual gold production to more than
700,000 ounces by 2007 at a total cash cost below $150 per ounce.

Safe Harbor Statement under the United States Private Securities
Litigation Reform Act of 1995: Except for the statements of historical
fact contained herein, the information presented constitutes
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements,
include, but are not limited to those with respect to, the price of
gold, the estimation of mineral reserves and resources, the realization
of mineral reserves estimates, the timing and amount of estimated future
production, costs of production, capital expenditures, costs and timing
of the development of new deposits, success of exploration activities,
Glamis' hedging practices, permitting time lines, currency fluctuations,
requirements for additional capital, government regulation of mining
operations, environmental risks, unanticipated reclamation expenses,
title disputes or claims limitations on insurance coverage and the
timing and possible outcome of pending litigation. Often, but not
always, forward-looking statements can be identified by the use of words
such as "plans", "expects", or "does not expect", "is expected",
"budget", "estimates", "forecasts", "intends", "anticipates" or "does
not anticipate", or "believes", or variation of such words and phrases
or state that certain actions, events or results, "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Glamis to be materially different from
any future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among others, the
actual results of current exploration activities, actual results of
current reclamation activities, conclusions of economic evaluations,
changes in project parameters as plans continue to be refined, future
prices of gold, possible variations in ore grade or recovery rates,
failure of plant, equipment or processes to operate as anticipated,
accidents, labor disputes and other risks of the mining industry, delays
in obtaining governmental approvals or financing or in the completion of
development or construction activities, as well as those factors
discussed in the section entitled "Other Considerations" in the Glamis
Annual Information Form. Although Glamis has attempted to identify
important factors that could cause actual actions, events or results to
differ materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results not to
be as anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate as actual results
and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements.

This press release does not constitute an offer to buy or sell, or the
solicitation of an offer to buy or sell, any of the securities of Glamis
or Goldcorp. Such an offer may only be made pursuant to a registration
statement and prospectus filed with the U.S. Securities and Exchange
Commission and offer to purchase and circular filed with Canadian
securities regulatory authorities. Glamis has filed with the U.S.
Securities and Exchange Commission a Registration Statement on SEC Form
F-10, and is mailing an Offer Circular to Goldcorp stockholders
concerning the proposed business combination with Goldcorp. WE URGE
will be able to obtain the documents free of charge at the SEC's
website, or in Canada at In addition,
documents filed with the SEC and in Canada by Glamis will be available
free of charge from Glamis Investor Relations, 5190 Neil Road, Suite
310, Reno, NV 89502, telephone (775) 827-4600.

email requests for investor packets to:

email questions/correspondence to:


Contact Information

    Glamis Gold Ltd. - Media
    John Lute
    (416) 929-5883
    Glamis Gold Ltd. - Media
    Larry Roth
    (732) 598-2092
    Glamis Gold Ltd. - Investors
    Michael A. Steeves
    Vice President, Investor Relations
    (775) 827-4600 ext. 3104