Yamana Gold Inc.

Published : July 29th, 2016

Yamana Gold Announces Sale of its Mercedes Mine in Mexico

( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  

Yamana Gold Announces Sale of its Mercedes Mine in Mexico

TORONTO, ONTARIO--(Marketwired - July 28, 2016) -YAMANA GOLD INC. (TSX:YRI)(NYSE:AUY) ('Yamana' or 'the Company') is pleased to announce that it has entered into a definitive Share Purchase Agreement (the 'Agreement') to sell 100% of its interest in the Mercedes mine in Sonora, Mexico to Premier Gold Mines Limited ('Premier') (herein referred to as the 'Transaction'). Pursuant to the Agreement, Yamana will receive consideration in the form of cash and equity securities, the value of which was $140 million at the time of negotiations. Total cash and equity securities consideration is summarized as follows:

  1. Cash consideration of $122.5 million;
  2. Approximately 6 million Premier common shares; and
  3. Approximately 3 million Premier common share purchase warrants (exercisable at C$4.75 per common share for 24 months from the closing of the Transaction).

The Company expects to use the proceeds from the Transaction to reduce the Company's net debt position.

In addition, the Company will receive a 1% net smelter return ('NSR'), to become payable commencing on the earlier of six years from closing of the Transaction and the date upon which cumulative production of 450,000 ounces of gold equivalent from Mercedes has been achieved. The NSR allows Yamana to retain an economic interest in the potential for exploration success and ultimately mine life extension that exists at Mercedes, which is the Company's sole operating mine in Mexico.

With the previously announced decision to recommission the Company's C1 Santa Luz project in Brazil ('C1 Santa Luz'), the Company has identified an internal opportunity to replace gold production from Mercedes beginning in 2018. As per the details provided in the C1 Santa Luz announcement just released, production in the first full year from C1 Santa Luz is expected to be more than 130,000 ounces of gold, with an estimated average annual production of approximately 114,000 ounces of gold over the first seven years. The updated Mineral Reserve and Mineral Resource estimate for C1 Santa Luz shows an increase of approximately 21% in overall Mineral Resources, inclusive of Mineral Reserves but excluding Inferred Mineral Resources, compared to the 2015 preliminary economic assessment. The Company expects cash flows from the assets in its Brio Gold Division, including Riacho dos Machados, to fund the recommissioning of C1 Santa Luz.

The Transaction, which is subject to customary regulatory and anti-trust approvals and other customary closing conditions, is expected to close by September 30, 2016.

(All amounts are expressed in United States dollars unless otherwise indicated.)

Peter Marrone, Chairman and Chief Executive Officer of Yamana, commented as follows: 'We are pleased to enter into this transaction with Premier Gold. The proceeds will allow us to accelerate our debt reduction initiatives and thereby significantly reduce our net debt while modestly impacting our consolidated production and cash flow. In addition, we have identified an opportunity within our portfolio, that being C1 Santa Luz, for the replacement of the gold production that will be foregone from Mercedes. C1 Santa Luz has a very modest capital cost, expected average annual production of 114,000 ounces of gold at comparable cost to Mercedes, an expected mine life of more than 10 years, and is in a jurisdiction in which we have a significant presence. This sale is one of a number of strategic initiatives we have advanced to improve our net debt position while ensuring we are positioned to deliver value creation over the longer term.'

About Yamana

Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions throughout the Americas including Brazil, Argentina, Chile, Mexico and Canada. Yamana plans to continue to build on this base through existing operating mine expansions, throughput increases, development of new mines, the advancement of its exploration properties and, at times, by targeting other gold consolidation opportunities with a primary focus in the Americas.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains or incorporates by reference 'forward-looking statements' and 'forward-looking information' under applicable Canadian securities legislation within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking information includes, but is not limited to information with respect to the Company's strategy, plans or future financial or operating performance. Forward-looking statements are characterized by words such as 'plan,' 'expect', 'budget', 'target', 'project', 'intend', 'believe', 'anticipate', 'estimate' and other similar words, or statements that certain events or conditions 'may' or 'will' occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company's expectations in connection with the satisfaction of all closing conditions, the completion of the Transaction, the expected use of proceeds discussed herein, the reduction of the Company's net debt position and delivering value creation over the long term, as well as those risk factors discussed or referred to herein and in the Company's Annual Information Form filed with the securities regulatory authorities in all provinces of Canada and available at www.sedar.com, and the Company's Annual Report on Form 40-F filed with the United States Securities and Exchange Commission. Although the Company 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 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. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company's expected plans and objectives in connection with the Transaction and may not be appropriate for other purposes.

Read the rest of the article at www.publicnow.com
Data and Statistics for these countries : Argentina | Brazil | Chile | Mexico | All
Gold and Silver Prices for these countries : Argentina | Brazil | Chile | Mexico | All

Yamana Gold Inc.

ISIN : CA98462Y1007
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
Projects & res.
Asset profile
Contact Cpy

Yamana Gold is a gold producing company based in Canada.

Yamana Gold produces gold, copper, molybdenum, silver and zinc in Argentina, in Brazil and in Chile, develops copper, gold, lead, molybdenum, silver and zinc in Argentina and in Mexico, and holds various exploration projects in Brazil.

Its main assets in production are ALUMBRERA and GUALCAMAYO in Argentina, MINERA FLORIDA and EL PEÑON in Chile and FAZENDA BRASILEIRO, JACOBINA, CHAPADA MINE, SÃO VICENTE, FAZENDA NOVA and SÃO FRANCISCO in Brazil, its main assets in development are AGUA RICA in Argentina and MERCEDES in Mexico and its main exploration properties are MILLO in Peru, FERGUSSON ISLAND in Papua New Guinea, PICACHO in Mexico, CAIAMAR, PILAR, PAU A PIQUE, C1 SANTA LUZ and ERNESTO in Brazil and AMANCAYA and JERONIMO in Chile.

Yamana Gold is listed in Canada, in Germany, in United Kingdom and in United States of America. Its market capitalisation is CA$ 6.2 billions as of today (US$ 4.9 billions, € 4.3 billions).

Its stock quote reached its highest recent level on December 06, 1996 at CA$ 98.91, and its lowest recent point on August 22, 2003 at CA$ 1.20.

Yamana Gold has 948 040 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
Option Grants of Yamana Gold Inc.
2/21/2013Yamana Gold Declares Quarterly Dividend
10/29/2012Yamana Gold Declares Quarterly Dividend
2/23/2012Yamana Gold Increases Dividend by 10%
Financials of Yamana Gold Inc.
3/30/2015Provides Notice of First Quarter 2015 Financial Results Rele...
2/19/2014Yamana Gold Announces Fourth Quarter and Year End 2013 Resul...
10/29/2013Yamana Gold Announces Third Quarter 2013 Results
10/9/2013Yamana Gold Provides Notice of Third Quarter 2013 Financial ...
8/1/2013Yamana Gold Announces Second Quarter 2013 Results
7/3/2013Yamana Gold Provides Notice of Second Quarter 2013 Financial...
4/30/2013Yamana Gold Announces First Quarter 2013 Results
4/10/2013Provides Notice of First Quarter 2013 Financial Results Rele...
2/20/2013Yamana Gold Announces Fourth Quarter & Year End 2012 Results
1/16/2013Yamana Gold Provides Notice of Fourth Quarter 2012 Financial...
1/9/2013Provides Preliminary 2012 Operating Results, Outlook for 201...
10/29/2012Yamana Gold Announces Results for the Third Quarter 2012
10/2/2012Yamana Gold Provides Notice of Third Quarter 2012 Financial ...
8/8/2012Yamana Gold Announces Second Quarter Results
7/10/2012Provides Notice of Second Quarter 2012 Financial Results
5/2/2012Yamana Gold Announces First Quarter Results
5/2/2012Yamana Gold Declares Quarterly Dividend
4/10/2012Provides Notice of First Quarter 2012 Financial Results and ...
2/23/2012Yamana Gold Announces Record Fourth Quarter & Year End 2011 ...
10/4/2011provides notice of third quarter financial results
8/5/2011Yamana Gold Declares Quarterly Dividend
8/5/2011Yamana Gold Declares Quarterly Dividend
8/3/2011Yamana Gold Announces Second Quarter 2011 Results - Records ...
7/12/2011Provides Notice of Second Quarter Financial Results
5/4/2011Declares Quarterly Dividend
5/4/2011Announces First Quarter 2011 Results
7/1/2010Second Quarter Financial Results Release Notification & Conf...
5/3/2010First Quarter 2010 Results
4/9/2010First Quarter Results & Conference Call Date Change
4/5/2010Provides Notice of st Quarter Financial Results & AGM
11/3/2009Third Quarter 2009 Results
10/15/2009 Third Quarter Financial Results
8/4/2009Reports second quarter 2009 results
7/7/2009Second quarter financial results release notification
Project news of Yamana Gold Inc.
2/12/2015Yamana Gold reports loss on Brazil, Chile mine charges
2/11/2015Yamana Gold to build gold-silver mine in Argentina
8/1/2013Yamana Gold Outlines Successes of Cost Containment Initiativ...
7/31/2013Yamana Gold Provides 2013 Exploration Update
8/22/2012Yamana Gold Provides Update on Exploration at Chapada
8/22/2012Yamana Gold Completes Acquisition of Extorre Gold
6/5/2012Yamana Gold Provides 2012 Exploration Update
5/24/2012Premier Royalty Agrees to Acquire Golden Arrow's 1% NSR on Y...
8/4/2010(Gualcamayo)Provides Update & Makes Construction Decision For QDD Lower ...
1/26/2010(Agua Rica)Provides Update on Agua Rica & Construction at Pau a Pique
7/23/2009(Gualcamayo)Declares commercial production at Gualcamayo
Corporate news of Yamana Gold Inc.
7/29/2016Amazon, Alphabet & Other Companies Are in Spotlight as Inves...
7/29/2016Yamana Gold misses 2Q profit forecasts
7/29/2016Yamana Gold Announces Second Quarter 2016 Results
7/29/2016Yamana Gold Announces Sale of its Mercedes Mine in Mexico
7/28/2016Yamana Gold Declares Third Quarter Dividend
7/28/2016Yamana Gold Makes Decision to Move Forward With C1 Santa Luz...
6/21/2016Yamana Provides Notice of Second Quarter 2016 Financial Resu...
5/5/2016Yamana Gold Announces Voting Results from Annual Meeting of ...
5/4/2016Yamana Gold beats 1Q profit forecasts
5/4/2016Yamana Gold Declares Second Quarter Dividend
5/4/2016Yamana Gold Announces First Quarter 2016 Results
4/11/2016Yamana Provides Preliminary First Quarter Operational Result...
4/8/2016Yamana Provides Notice of First Quarter 2016 Financial Resul...
3/31/2016Yamana Announces Copper Purchase Agreement in Relation to Fu...
2/1/2016Notable option activity in equity names
1/14/2016Here’s Why These 4 Stocks Made Big Moves Thursday
1/14/2016Yamana Gold Provides Preliminary 2015 Operational Results an...
1/6/2016Why Are These Five Stocks Rallying on Wednesday?
12/28/2015Why You Should Look Out for Gold Miners’ Commodity Exposure
12/21/2015Yamana Gold Provides Update on Brio Gold Operations and Susp...
12/11/2015S&P Dow Jones Indices Announces Changes to the S&P/TSX Canad...
11/22/2015Is Yamana Gold Inc. (USA) (AUY) A Gold Producer Worth Invest...
10/28/2015Will Yamana Gold (AUY) Surprise This Earnings Season?
10/27/2015Yamana Gold raises $152 mln to pay off credit facility
10/27/2015Yamana Announces Metal Purchase Agreements With Sandstorm an...
10/6/2015Comp: Analyzing Gold Miners’ Reserve Replacement
10/5/2015Comp: What Do Analysts Think About the Gold Miners?
9/30/2015Comp: Is Barrick Gold’s High Debt a Cause for Concern?
9/29/2015Comp: Which Gold Miners Expect Production Growth Going Forwa...
9/29/2015Yamana Provides Notice of Third Quarter 2015 Financial Resul...
9/4/2015Callinex Mines' President and CEO Max Porterfield Interviewe...
8/13/2015Brio Gold, a Subsidiary of Yamana Gold, Provides Update on C...
8/1/2015Edited Transcript of YRI.TO earnings conference call or pres...
7/30/2015Yamana Gold Provides Brazilian Exploration Update
7/30/2015Yamana Gold Announces Second Quarter 2015 Results
7/30/2015Yamana Gold Declares Third Quarter Dividend
7/28/2015Will Yamana Gold (AUY) Surprise This Earnings Season? - Anal...
7/16/2015Brio Gold, a Subsidiary of Yamana Gold, Provides Second Quar...
4/24/2015Lower Profits, Output on Tap for Barrick, Goldcorp -- Earnin...
4/14/2015UPDATE 3-Canada's Alamos Gold, AuRico merger may spark rival...
4/13/2015Canada's Alamos Gold, AuRico merger may spark rival bids
4/8/2015Yamana Gold plans to list shares of Brio unit in third quart...
4/8/2015Yamana Gold Provides Update on Brio Gold
4/8/2015Yamana plans to publicly list Brio unit in third quarter
4/8/2015Provides Update on Brio Gold
3/30/2015Yamana Provides Notice of First Quarter 2015 Financial Resul...
3/24/2015Candente Gold Appoints Paul H. Barry as Chairman
3/23/2015Golden Valley Mines Provides Update on Its 56%-Owned Subsidi...
3/12/2015Yamana Gold Announces Signing of Definitive Agreement With G...
3/12/2015Yamana Gold Announces Signing of Definitive Agreement With G...
3/9/2015Yamana Gold Announces Annulment of Award Assessment in Argen...
3/3/2015Yamana Gold Announces Annulment of Award Assessment in Argen...
3/3/2015Announces Annulment of Award Assessment in Argentine Legal D...
2/18/2015Yamana Gold Introduces Dividend Reinvestment Plan
2/18/2015Yamana Gold Announces Fourth Quarter and Year End 2014 Resul...
2/18/2015Yamana Gold Introduces Dividend Reinvestment Plan
2/11/2015Yamana Gold reports fourth-quarter loss on impairment charge...
2/11/2015Yamana Gold Announces Fourth Quarter and Year End 2014 Resul...
2/11/2015Yamana Announces Growth in Mineral Reserves and Mineral Reso...
2/11/2015Yamana Gold Announces Formal Decision to Proceed With Cerro ...
2/11/2015Yamana Gold Announces Formal Decision to Proceed With Cerro ...
2/11/2015Yamana Gold Declares First Quarter Dividend
2/11/2015Yamana Gold Declares First Quarter Dividend
2/3/2015Yamana Announces Closing of C$299.3 Million Equity Financing...
1/23/2015Yamana Provides Notice of Fourth Quarter 2014 Financial Resu...
1/20/2015Yamana Provides Notice of Fourth Quarter 2014 Financial Resu...
1/16/2015Yamana Advises of the Filing of Preliminary Prospectus
1/16/2015Advises of the Filing of Preliminary Prospectus
2/19/2014Yamana Gold Declares First Quarter Dividend
10/29/2013Yamana Gold Declares Fourth Quarter Dividend
7/31/2013Yamana Gold Declares Third Quarter Dividend
2/13/2013Announces 44% Increase to Mineral Resources at Cerro Moro
8/8/2012Could Potentially Reach $1,900/oz According to HSBC Analysts
6/18/2012Builds on Its Development Pipeline With Acquisition of Extor...
1/10/2012Fourth Quarter 2011 Financial Results Release Notification a...
8/4/2010Reports 2nd Quarter 2010 Results & Increases Dividend
5/15/2010Receives Shares of Aura Minerals
5/5/201050% Increase in Dividend
4/1/2010Reaffirms Annual 2010 Guidance
3/4/20102009 Results & Mineral Reserves & Resources
1/12/2010Provides 2010 & 2011 Operating Outlook
11/6/2009Delclares Quarterly Dividend
10/6/2009Hosts Annual Analyst And Investor Day
9/30/2009Hosts Official Inauguration Ceremony For The Gualcamayo Mine...
9/1/2009Declares Quaterly Dividend
8/31/2009 Board of Directors and management update
6/22/2009Added to FTSE Gold Mines Index
6/19/2009 Declares quarterly dividend
6/17/2009Development and near development stage projects update
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
CA$ 6.49
08/15 17:00 -0.030
Prev close Open
6.52 6.43
Low High
6.41 6.52
Year l/h YTD var.
4.90 -  7.88 25.05%
52 week l/h 52 week var.
4.86 -  7.88 18.21%
Volume 1 month var.
867,662 9.08%
24hGold TrendPower© : -3
Produces Copper - Gold - Silver - Zinc
Develops Copper - Gold - Molybdenum - Silver
Explores for Gold - Silver
Interactive chart Add to compare
Print Compare Export
Last updated on : 4/27/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
Annual variation
5 years chart
3 months chart
3 months volume chart
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
announces expected non-cash impairment
AU$ 7.07-0.42%Trend Power :
Oceana Gold(Au)OGC.AX
AU$ 2.32-2.11%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
US$ 3.32-1.48%Trend Power :
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
Reduced Funding Requirement
GBX 0.59+0.00%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.10+566.67%Trend Power :
Closes Bridge Loan Financing
CA$ 2.72+0.74%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 7.28-0.95%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.26-1.92%Trend Power :
Q A April 2017 Quarterly Report
AU$ 0.34-6.76%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 2.12+1.92%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 63.57-3.02%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
2nd Quarter Report
AU$ 0.03+3.03%Trend Power :