Goldcorp Inc. is set to buy Probe Mines Ltd., a company chaired by former Barrick Gold Corp.'s chief executive for about $526-million, for its gold property in northern Ontario.

The transaction represents the first deal for Jamie Sokalsky, who left Barrick as CEO in a management shakeup and became the chairman of Probe in the fall.

This is also the first acquisition for Goldcorp, the world's largest gold company by market capitalization, since it failed to acquire Osisko's massive mine in Quebec a year ago.

It comes a week after Goldcorp announced the sale of its South Dakota mine, in an effort to focus on its better performing mines.

The three-year slump in commodity prices has prompted Goldcorp and other mining companies to improve their portfolios and ditch non-core assets.

"In combination with the recently-announced sale... this strategic acquisition is the latest example of our commitment to upgrading the quality of Goldcorp's overall asset portfolio," Goldcorp's chief executive Chuck Jeannes said in a statement.

As part of the transaction, Probe's shareholders will receive shares in an exploration company, which will house Probe's other mineral properties.

Mr. Sokalsky and Probe's chief executive will remain in their current positions at the smaller exploration company.

The announcement sent Probe's stock up 51 per cent to $5.07 early Monday morning. The transaction is expected to close around late March.

GMP Securities advised Goldcorp and BMO Nesbitt Burns advised Probe.