Vancouver-based Goldcorp Inc., one of the world's largest producers of gold, has finalized its deal to buy the Kaminak Gold Corp. and the Coffee project near Dawson City.

Under the agreement, first announced last month, Goldcorp acquired all the outstanding shares of the junior mining company for about $520 million, or $2.62 per share.

"With a large, geologically prospective land package in a mining friendly jurisdiction, the Coffee project has the potential to grow into a camp," said Goldcorp CEO David Garofalo in a statement.

"Kaminak has done an excellent job engaging with First Nations throughout the initial exploration phases, which will serve as a solid foundation for us to build upon as the project enters the next phase of development."

The deal has been lauded by many in Yukon, who believe a major player like Goldcorp will ensure the project is developed.

Kaminak has said the 10-year Coffee project would generate more than $2 billion in gross revenues, and employ close to 500 people. 

The junior mining company said it would have permitting applications for the proposed mine ready to submit to the Yukon Environmental and Socio-economic Assessment Board (YESAB) this summer.

The goal is to begin construction in 2018.