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Yamana Gold to sell 100% interest in Gualcamayo gold mine to Mineros

Yamana Gold to sell 100% interest in Gualcamayo gold mine to Mineros

A Canadian-based gold producer with an expansive portfolio across Canada, Brazil Chile and South America, has sold its interest in one of its Argentinian mines and is looking to offer a majority stake in a Chilean mine.

Yamana Gold announced this week that it had entered into a definitive purchase agreement to sell 100% of its interest in the Gualcamayo mine, located in the San Juan Province of Argentina.

Under the agreement, Yamana will receive a cash consideration of $30mn in cash upon closing as well as an additional $30mn in cash upon declaration of commercial production of the Deep Carbonates project, an undeveloped mineral resource below the existing gold mineralisation at Gualcamayo.

The total value of the deal is around $85mn.

In a separate move, Yamana has also agreed to grant Mineros an option to acquire jup to 51% interest in the La Pepa project, located in the Maricunga gold belt, Chile, over an earn in period of four years and then the remaining 49% interest pursuant to a call option.

Under the terms of this agreement, Mineros must spend $5 million on the La Pepa project over a two-year period to earn an initial 20% interest.

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To earn an additional 31% interest, Mineros must pay $5 mn in cash to Yamana on completion of an additional $15 mn of spending on the La Pepa project over another two-year period with expenditures directed toward the completion of a National Instrument technical report.

The Gualcamayo mine produced ardpind 154,052 oz of gold in 2017.