Document:

exv4w5

 

Offer to Purchase Each Outstanding Common
Share

of

Goldcorp Inc.

for

0.89 of a Common Share

of

Glamis Gold Ltd.

THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT
9:00 P.M., TORONTO TIME, ON FEBRUARY 14, 2005, UNLESS
THE OFFER IS EXTENDED OR WITHDRAWN.

January 7, 2005

To Our Clients:

     
Enclosed for your consideration is an Offer to
Purchase, dated January 7, 2005 (the “Offer to
Purchase”), together with the Circular accompanying the
Offer to Purchase (the “Circular”) and the related
Letter of Acceptance and Transmittal for Common Shares (the
“Letter of Transmittal,” which, together with the
Offer to Purchase and the Circular, as each may be amended or
supplemented from time to time, collectively constitute the
“Offer”) relating to the third party tender offer by
Glamis Gold Ltd., a British Columbia corporation
(“Glamis”) to purchase all of the outstanding common
shares (the “Goldcorp Shares” and the certificates
representing such Goldcorp Shares, the “Goldcorp Share
Certificates”), of Goldcorp Inc., an Ontario corporation
(“Goldcorp”), subject to the terms and conditions set
forth in the Offer, for 0.89 of a common share of Glamis per
Goldcorp Share.

     
The consideration payable to the Goldcorp
shareholders who deposit their Goldcorp Shares pursuant to the
Offer will be reduced by applicable withholding taxes.

     
We are the holder of record of Goldcorp Shares
held by us for your account. The Letter of Transmittal is
furnished to you for your information only and cannot be used by
you to deposit Goldcorp Shares held by us for your account. A
deposit of such Goldcorp Shares can be made only by us as the
holder of record and pursuant to your instructions.

     
Accordingly, we request instructions as to
whether you wish to have us deposit on your behalf any or all of
the Goldcorp Shares held by us for your account, in accordance
with the terms and subject to the conditions set forth in the
Offer.

     
Your attention is directed to the following:

		
	 	     
    1. The Offer is being made for all
    outstanding Goldcorp Shares.
    
	 
	 	     
    2. The Offer will expire at 9:00 p.m.,
    Toronto time, on February 14, 2005, unless the Offer is
    extended.
    
	 
	 	     
    3. Depositing shareholders will not be
    obligated to pay any commissions or fees to any broker, dealer
    or other person or, except as set forth in Instruction 8 of
    the Letter of Transmittal, stock transfer taxes with respect to
    the transfer and sale of Goldcorp Shares to the Offerors
    pursuant to the Offer.
    
	 
	 	     
    4. The Offer is conditioned upon, among
    other things, there being validly deposited under the Offer and
    not withdrawn prior to the Expiry Time (as defined in the Offer
    to Purchase) a number of shares of Goldcorp Shares which
    constitutes at least 66 2/3% of the Goldcorp Shares (on a
    fully diluted basis) outstanding at the Expiry Time.

     
If you wish to have us deposit any or all of the
Goldcorp Shares held by us for your account, please instruct us
by completing, executing and returning to us the instruction
form contained in this letter. If you authorize a deposit of
your Goldcorp Shares, all such Goldcorp Shares will be deposited
unless otherwise specified in your instruction form. Your
instructions should be forwarded to us in ample time to permit
us to submit a deposit on your behalf on or prior to the Expiry
Time.

 

Offer to Purchase Each Outstanding Common
Share

of

Goldcorp Inc.

for

0.89 of a Common Share

of

Glamis Gold Ltd.

        
The undersigned acknowledge(s) receipt of your
letter enclosing the Offer to Purchase, dated January 7,
2005 (the “Offer to Purchase”), together with the
Circular accompanying the Offer to Purchase (the
“Circular”) and the related Letter of Acceptance and
Transmittal for Common Shares (the “Letter of
Transmittal,” which, together with the Offer to Purchase
and the Circular, as each may be amended or supplemented from
time to time, collectively constitute the “Offer”)
relating to the third party tender offer by Glamis Gold Ltd., a
British Columbia corporation (“Glamis”) to purchase
all of the outstanding common shares (the “Goldcorp
Shares” and the certificates representing such Goldcorp
Shares, the “Goldcorp Share Certificates”), of
Goldcorp Inc., an Ontario corporation, subject to the terms and
conditions set forth in the Offer, for 0.89 of a common share of
the Glamis.

     
The consideration payable to the Goldcorp
shareholders who deposit their Goldcorp Shares pursuant to the
Offer will be reduced by applicable withholding taxes.

     
This will instruct you to deposit to Glamis the
number of Goldcorp Shares indicated below (or, if no number is
indicated below, all Goldcorp Shares) which are held by you for
the account of the undersigned, upon the terms and subject to
the conditions set forth in the Offer to Purchase, the Circular
and the Letter of Transmittal furnished to the undersigned.

	 	 	 	 	 
	
    Number of Goldcorp

    Shares to be Deposited:
    	 	
    Goldcorp Shares*
    	 	
    SIGN BELOW
    
	
	 	
	 	

	 	 	 	 	
    Signature(s)
	 
	
    
    Account Number:
    

    	 	 	 	 
	
	 	

	 	 	 	 	

	 	 	 	 	
    Please print name(s)
	 	 	 	 	

	 	 	 	 	
    Address
	 	 	 	 	

	 	 	 	 	
    Area Code and Telephone Number
	 	 	 	 	

	 	 	 	 	
    Taxpayer Identification Number(s)

    or Social Security Number(s)
	 
	
    Dated: ------------------------------------, 2005
    	 	 

		
	* 	
    Unless otherwise indicated, it will be assumed
    that all of your Goldcorp Shares held by us for your account are
    to be deposited.
    

2exv4w6

 

GLAMIS GOLD LTD.

January 7, 2005

Dear Goldcorp Shareholder:

     
Glamis Gold Ltd. is pleased to enclose an offer
(the “Offer”) to purchase all the outstanding common
shares of Goldcorp Inc. Shareholders depositing their Goldcorp
shares under the Offer will receive 0.89 common shares of Glamis
for each Goldcorp common share deposited. The Offer
represents a 22.6% premium for Goldcorp shareholders, based
on the volume-weighted average trading price for Glamis and
Goldcorp on the NYSE for the 30 trading days ended
December 15, 2004, the day before we announced our
intention to make the Offer.

     
As described below, if Goldcorp shareholders
vote to approve the issuance of Goldcorp shares to Wheaton River
shareholders at the January 31, 2005 Goldcorp Shareholders
meeting and the Wheaton River Acquisition Agreement is not
terminated, a condition of our Offer will not be satisfied and
the Offer will not proceed.

     
We believe the combination of Glamis and Goldcorp
is a unique opportunity to create a world-class, pure gold
producer by combining the strengths of Glamis and Goldcorp. As
well, with the public announcement of Mr. Robert
McEwen’s intention to resign as Goldcorp’s Chief
Executive Officer, the Offer would address Goldcorp’s need
for new leadership through Glamis’ knowledgeable and
experienced management team.

     
We believe the combination of Glamis and Goldcorp
will produce substantial benefits:

     
Premier gold producer.
The combined company will be a
world-class, pure gold producer that will be substantially
larger than the companies in the intermediate gold company
group. Its simple, low-cost operations in politically stable
jurisdictions will present a positive alternative for investors
to the senior producers, combining the market liquidity of a
senior producer with the growth potential of an intermediate
producer. The combined company will have projected gold
production in 2005 of nearly 1.0 million ounces and a
large reserve base, with over 11 million ounces of proven
and probable gold reserves.

     
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. We believe there are good opportunities to enhance the
value of Red Lake by the discovery of more reserves, achieving
cost savings through mine optimization, increasing throughput
and lowering unit costs, and by considering meaningful
consolidation in the Red Lake camp.

     
Professional, Operations-Oriented Management.
We bring to the combined company a
professional, operations-oriented management team experienced in
both acquisitions, and mine development and operations. Our
approach to operations is a bottom-up strategy, driving
efficiency through empowerment of local management. Based on our
due diligence reviews of Goldcorp, we are confident that this
approach will be highly successful at Red Lake. Glamis has
successfully developed and operated gold mines for the past
25 years and many of the people responsible for this
outstanding record remain with us.

     
Financial strength.
The combined company will have a
strong, liquid balance sheet, with approximately
$500 million in cash and cash equivalents. The annual
average cash cost of the combined company over the next five
years is projected to be approximately $120 per ounce,
approximately 45% below the average of the senior North American
gold producers. Subject to board approval, we intend to pay a
dividend to shareholders of the combined company. We will
also seek input from shareholders regarding the practice of
withholding a portion of gold production from sale in order to
take advantage of expected higher future gold prices.

 

     
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. A
Goldcorp-Glamis combination will not jeopardize Goldcorp’s
premium gold multiple through the inclusion of base metals. In
addition, we will continue our strategy of not hedging,
with 100% of gold production and gold reserves remaining
unhedged.

     
Diversified Portfolio of Properties with Long
Mine Life. We have established a
diversified portfolio of new low-cost, long-lived operations.
The combination of these assets with the primarily
single-property portfolio of Goldcorp will provide diversity of
operating risk that the Goldcorp shareholders currently do not
enjoy.

     
Outstanding Growth Profile.
The combination of expected growth at
Red Lake with our existing growth projects provides superior
opportunities for enhanced valuations from fully permitted and
financed growth projects already under construction. Glamis
expects annual production of the combined company to grow by
66% to 1.4 million ounces by 2007. Additionally, we
believe that each of our mines and Red Lake have excellent
prospects for discovery and reserve expansion.

     
Track Record of Acquisition Integration
Success. We have demonstrated our
ability to effectively build value through mergers and
acquisitions, having successfully identified and implemented
important mining and process enhancements at our Marigold and El
Sauzal mines, and having significantly expanded reserves and
resources at our San Martin and Marigold mines and at our Marlin
and Cerro Blanco projects. Each of these mines and projects came
to us through mergers completed since 1998.

     
Our offer is conditional upon, among other
things, at least 66 2/3% of the shares of Goldcorp (on a
fully diluted basis) being validly deposited under the Offer and
not withdrawn, the Goldcorp shareholders not approving the
issuance of Goldcorp shares in connection with the Wheaton River
acquisition and the Wheaton River Acquisition Agreement being
terminated. Enclosed are documents that describe the terms
and conditions of our Offer in greater detail. We refer you
specifically to the accompanying Letter of Acceptance and
Transmittal for instructions on how to tender your Goldcorp
shares to the Offer.

     
If you have any questions, please contact our
Information Agent, Georgeson Shareholder Communications Canada,
Inc., toll-free at 1-877-288-7946.

Thank you for your consideration of our Offer.

Yours truly,

GLAMIS GOLD LTD.

(Signed) C. Kevin McArthur

President & Chief Executive Officer

2

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