UPDATE 1-Xstrata, Goldcorp venture gets option to buy Yamana's Agua
Rica
* JV co has option to buy Agua Rica for up to $110 mln
* Goldcorp to finance 42.86 pct, Xstrata 57.14 pct of deal (Follows
alerts)
March 8 - A joint venture between Yamana Gold , Goldcorp Inc and Xstrata
Queensland Ltd has taken an option to buy Yamana's stake in the Agua Rica
project in Argentina for up to $110 million.
The joint venture, called Minera Alumbrera Limited Sucursal, has a
four-year option to buy Yamana's interest in the copper, gold, silver and
molybdenum deposit in Catamarca in northwestern Argentina.
Xstrata will finance about 57 percent of the option payment and Goldcorp
the rest.
Yamana would receive $150 million up front, and $50 million more once the
project gets commissioned. It also would get the right to a deferred payment
related to 65 percent of the payable gold production from Agua Rica up to 2.3
million ounces.
Yamana owns 12.5 percent of Minera Alumbrera, which means it would
effectively sell 87.5 percent of its interest in Agua Rica. Xstrata owns half of
Minera Alumbrera. Goldcorp owns 37.5 percent.
Bank of America Merrill Lynch advised Yamana on the deal.
Shares of Goldcorp fell 1.65 percent to C$47.90 on the Toronto Stock
Exchange on Tuesday. Yamana shares rose 2 percent to C$12.46. (Reporting by
Thyagaraju Adinarayan in Bangalore; Editing by Don
Sebastian)
http://af.reuters.com/article/metalsNews/idAFL3E7E81L920110308 |
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