|Published : March 14th, 2011|
Minera Alumbrera shareholders enter letter of intent for an option to acquire t
Comment this article
Copper and Goldcorp Inc. have entered into a Letter of Intent ("LOI")
with Yamana Gold Inc. that grants Minera Alumbrera an exclusive option
with respect to Yamana's 100% interest in the Agua Rica copper gold project in
Catamarca province in northwest Argentina. The transaction remains subject to
the parties agreeing binding transaction documents.
Alumbrera is a joint venture company between Xstrata Copper (Manager and 50%
shareholder), Goldcorp (37.5%) and Yamana (12.5%). The Agua Rica deposit is
located 35 kilometres southeast of Bajo de la Alumbrera copper and gold mine,
operated by Minera Alumbrera.
The LOI outlines
an agreement in which Minera Alumbrera will be granted an exclusive four-year
option to acquire Yamana's interest in the Agua Rica project for progressive
option payments of up to US$110 million. Xstrata Copper and Goldcorp will
finance all payments related to the option on a 57.14% and 42.86% basis
Copper and Goldcorp can collectively elect to exercise the option at any time
during the four-year period through an approval to proceed decision for
construction of the Agua Rica project. On approval to proceed, Yamana would
receive US$150 million and on commissioning an additional US$50 million. Yamana
would also retain the right to a deferred payment related to 65% of the payable
gold production from Agua Rica to a maximum of 2.3 million ounces.
Alumbrera will manage the Agua Rica project and fund the completion of a final
feasibility study and all development costs. The respective ownership interests
in Minera Alumbrera would remain unchanged and apply to the Agua Rica project.
Copper Chief Executive, Charlie Sartain said the option would enable Minera
Alumbrera to further evaluate the potential of the Agua Rica project as part of
that company's long term growth strategy.
option in the Agua Rica project presents Minera Alumbrera with an attractive
low-risk opportunity to expand its current operations and extend its current
mine life by more than 25 years. On completion of the binding transaction
documents, we look forward to working with our joint venture partners, relevant
authorities and other key stakeholders, including Yacimientos Mineros de Agua
de Dionisio1, to assess the potential development of Agua
Neither the content of the company's
website nor the content of any other website accessible from hyperlinks on the
company's website is incorporated into, or forms part of, this announcement
Xstrata is a
global diversified mining group, listed on the London and Swiss Stock
Exchanges. Headquartered in Zug, Switzerland, Xstrata maintains a meaningful
position in seven major international commodity markets: copper, coking coal,
thermal coal, ferrochrome, nickel, vanadium and zinc with additional exposure
to gold, cobalt, lead and silver. The Xstrata Group also comprises a growing
platinum group metals business, iron ore projects, recycling facilities and a
suite of global technology products, many of which are industry leaders. The
Group's operations and projects span 20 countries.
Copper is the fourth largest global copper producer with attributable
mined production in 2010 of 913,500 tonnes of copper in cathodes and
concentrates. The company is also one of the world's largest producers of
smelter and refined copper, including from third party materials.
in Brisbane, Xstrata Copper is one of the commodity business units within the
major global diversified mining group Xstrata plc. Its mining and metallurgical
operations and development projects span eight countries: Argentina, Australia,
Canada, Chile, Peru, the Philippines, Papua New Guinea and the USA. Its
operations and projects are administered through a regional divisional
management structure, which ensures that critical decisions are taken close to
the related businesses. It also has a recycling business (Xstrata
Recycling) with plants in the United States and offices in Canada and
Copper manages and has a 50% controlling interest in Minera Alumbrera with
Canadian companies Goldcorp and Yamana Gold owning the remaining 50%. Minera
Alumbrera has the right to mine the Bajo de la Alumbrera copper-gold deposit,
located in the in Catamarca province in northwest Argentina, by agreement with
Yacimientos Mineros de Agua de Dionisio (YMAD) which has the title to the
deposit. YMAD is formed by the government of Catamarca province and the
National Tucuman University and is entitled to 20% of Minera Alumbrera's net
Alumbrera has an annual production capacity of 150,000 tonnes of copper in
concentrate, 400,000 ounces of gold in concentrate, 50,000 ounces of gold dore
and 1,600 tonnes of molybdenum concentrate.. Its facilities include the open pit
mine and processing plant situated in Catamarca; 317 km slurry pipeline
extending from Catamarca to Tucum�n; 202 km 220 kV powerline from El Bracho
power station in Tucum�n; filter plant and rail loading facilities situated in
Cruz del Norte (Tucum�n); and port facilities situated in Puerto General San
Mart�n, near Rosario (Santa Fe).
CODE : XTA.L
Projects & res.Press
Asset profileContact Cpy
Xstrata is a producing zinc and lead company based in Switzerland.
Xstrata produces zinc, lead, bauxite, coal, cobalt, copper, gold, molybdenum, nickel and silver in Argentina, in Australia, in Botswana, in Canada, in Chile, in Colombia, in Jamaica and in Peru, develops cobalt, copper, copper , gold, lead, molybdenum, nickel, palladium, platinum, silver, uranium and zinc in Argentina, in Australia, in Canada, in Chile, in Dominican Republic, in New Caledonia and in Philippines, and holds various exploration projects in Argentina, in Australia, in Botswana, in Brazil, in Canada, in Chile, in Greenland, in Ireland, in Mexico, in Norway, in Panama, in Papua New Guinea, in Peru, in South Africa, in Turkey and in Yemen.
Its main assets in production are ALUMBRERA in Argentina, KIDD CREEK MINE (MINE D), CRAIG - ONAPING (SUDBURY) MINE, PELLETIER LAKE (STADACONA MINE), LINDSLEY MINE, NORALEX (WEST ANSIL, HORNE, ETC), STRATHCONA, KIDD CREEK DIVISION, BUCKO LAKE, FALCONBRIDGE MINE, RAGLAN, SUDBURY, BRUNSWICK MINE and KIDD in Canada, HYC MCARTHUR RIVER, MOUNT ISA LEAD ZINC SILVER, ERNEST HENRY, BOUNTY MINE, COSMOS MINE, THUNDERBOX, EMILY ANN (LAKE JOHNSTON), MT MCCLURE, MT ISA, SILVER SWAN, MT ISA BLACK STAR, MT ISA ENTERPRISE and EMILY ANN in Australia, LOMAS BAYAS and COLLAHUASI MINE in Chile, TINTAYA, ANTAMINA, ANTAMINA and ANTAMINA ZINC ORE in Peru, PHOENIX MINE (TATI NICKEL) in Botswana, PRODECO in Colombia and ST ANN BAUXITE in Jamaica, its main assets in development are LENNARD SHELF, MAGGIE HAYS, CLONCURRY COPPER and LENNARD SHELF in Australia, CERRO DE MAIMON and FALCONDO MINE in Dominican Republic, AGUA RICA and EL PACHON in Argentina, HACKETT RIVER, PREMIERE RIDGE, ONAPING DEPTH, FRASER MORGAN, NICKEL RIM SOUTH, ONAPING DEPTH, PERSEVERANCE and PD1 in Canada, LOMAS BAYAS II in Chile, KONIAMBO in New Caledonia and TAMPAKAN in Philippines and its main exploration properties are HORNE SMELTER, ISLAND COPPER, KONRAD, MARY MARCH, MEGATEM, ROBB LAKE, AKWESKWA, MUSK, CEZINC, DONKIN, TROILUS / TORTIGNY, TORTIGNY, SABIN, CHANCE, TULKS NORTH, CATFACE, GREAT BURNT LAKE, WEST ANSIL, TULK SOUTH - DOMINO, TULK EAST B ZONE, TULK SOUTH BOOMERANG, TULK EAST A ZONE, TULK LONG LAKE MAIN ZONE, SKIDDER, MATAGAMI, HEATH STEELE MINES, GASPE MINE and MONTCALM TWP PROP in Canada, BLACK ROCK, TOBY CREEK, MUSGRAVE, MOUNT PEAKE and SINCLAIR in Australia, ELMALAAN in Turkey, MANGABAL in Brazil, KABANGA in Tanzania, FRIEDA - NENA DEPOSIT in Papua New Guinea, PALLAS GREEN in Ireland and DIKOLOTI in Botswana.
Xstrata is listed in Germany and in United Kingdom. Its market capitalisation is GBX 2 893.1 billions as of today (US$ 4 497.6 billions, € 3 435.7 billions).
Its stock quote reached its lowest recent point on May 14, 2010 at GBX 1 000.81, and its highest recent level on October 14, 2011 at GBX 997.00.
Xstrata has 3 002 692 076 shares outstanding.
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