YAMANA GOLD INC. (TSX: YRI; NYSE: AUY) (“Yamana” or the “Company”)
is pleased to announce it has entered into a definitive option
agreement (the “Option Agreement”) pursuant to which it has granted
a privately-held portfolio management and capital markets company
based in Argentina, owned by Messrs. Eduardo Elsztain and Saúl
Zang, the right to acquire up to a maximum 40% interest in a joint
venture formed to hold the Suyai Project, an advanced stage gold
project located in Chubut Province in southern Argentina. Messrs.
Elsztain and Zang’s portfolio of controlled companies include
Argentina’s biggest real estate company, NASDAQ-listed
international agricultural companies, along with banking and mining
investments. Through its history, the group has led the successful
development of significant construction projects across the
country.
Under the terms of the Option Agreement, an
initial amount of US$2 million will be paid to secure the option
and the Argentine group will assume responsibility for all
environmental, social, and governance (“ESG”) matters and, in
particular, the group will lead the permitting efforts aimed to
advance the project through its different stages of development.
The Argentine group has the right to earn a maximum 40% interest in
the resulting joint venture formed to hold the Suyai Project by
fulfilling certain obligations and achieving certain milestones,
mostly relating to ESG matters, and by paying US$31.6 million
in various instalments plus all of their
proportionate expenses on or before December 31, 2024. The
Company believes there is considerable value, far in excess of cash
value, in fulfilling the obligations and achieving the milestones
relating to ESG matters which would advance the Suyai
project. Through certain of its holding
companies, Yamana would hold the remaining 60% of the
joint venture.
In the event the project receives approval to
proceed, Yamana would oversee its development, applying best
industry practices and its experience in project development and
operations in southern Argentina. Development of the project would
occur under the oversight of a board of directors of the holding
company that owns the project with the Argentine group nominating
two out of five directors. Yamana would nominate the other
directors. The joint venture would be a true joint venture with
each party being entitled to its proportion of gold production from
the project.
Currently, there is a moratorium on mining in
the province of Chubut, which would have to be lifted in order for
the project to receive approval to proceed. There can be no
assurance that this will occur although one of the objectives of
this arrangement leading to the joint venture is for a
re-engagement with the province and local community under the
control and direction of Argentine parties with greater familiarity
of and sensitivity to local ESG issues.
The most recent study of the Suyai Project
prepared by Yamana consists of a high grade, small scale
underground project whose development and operations would limit
surface and local disruption. The preferred plan option calls for
the production of high grade gold concentrate, which would be
transported by land and by sea to one or more gold smelters
world-wide. As only a concentrate would be produced at Suyai, no
cyanide or other deleterious chemicals would be used at site. Gold
production is expected to reach up to 250,000 ounces annually for
an initial eight years.
About YamanaYamana Gold Inc. is
a Canadian-based precious metals producer with significant gold and
silver production, development stage properties, exploration
properties, and land positions throughout the Americas, including
Canada, Brazil, Chile and Argentina. Yamana plans to continue to
build on this base through expansion and optimization initiatives
at existing operating mines, development of new mines, the
advancement of its exploration properties and, at times, by
targeting other consolidation opportunities with a primary focus in
the Americas.
FOR FURTHER INFORMATION, PLEASE
CONTACT:Investor Relations
416-815-02201-888-809-0925Email: investor@yamana.com
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 and 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, and anticipated
benefits of the option transaction. 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 unforeseen
impacts on cash flow, monetization initiatives, and available
residual cash, an inability to maintain a cash reserve fund balance
that can support current or future dividend increases, the outcome
of various planned technical studies, production and exploration,
development, optimizations and expansion plans at the Company's
projects, changes in national and local government legislation,
taxation, controls or regulations and/or change in the
administration of laws, policies and practices, and the impact of
general business and economic conditions, global liquidity and
credit availability on the timing of cash flows and the values of
assets and liabilities based on projected future conditions,
fluctuating metal prices (such as gold, silver and zinc), currency
exchange rates (such as the Brazilian Real, the Chilean Peso and
the Argentine Peso versus the United States Dollar), the impact of
inflation, possible variations in ore grade or recovery rates,
changes in the Company’s hedging program, changes in accounting
policies, changes in mineral resources and mineral reserves, risks
related to asset dispositions, risks related to metal purchase
agreements, risks related to acquisitions, changes in project
parameters as plans continue to be refined, changes in project
development, unanticipated costs and expenses, higher prices for
fuel, steel, power, labour and other consumables contributing to
higher costs and general risks of the mining industry, failure of
plant, equipment or processes to operate as anticipated, unexpected
changes in mine life, final pricing for concentrate sales,
unanticipated results of future studies, seasonality and
unanticipated weather changes, costs and timing of the development
of new deposits, success of exploration activities, permitting
timelines, government regulation and the risk of government
expropriation or nationalization of mining operations, risks
related to relying on local advisors and consultants in foreign
jurisdictions, environmental risks, unanticipated reclamation
expenses, risks relating to joint venture or jointly owned
operations, title disputes or claims, limitations on insurance
coverage, timing and possible outcome of pending and outstanding
litigation and labour disputes, risks related to enforcing legal
rights in foreign jurisdictions, 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 financial and operational performance and results as at
and for the periods ended on the dates presented in the Company’s
plans and objectives and may not be appropriate for other
purposes.
Yamana Gold (NYSE:AUY)
Historical Stock Chart
From Feb 2024 to Mar 2024
Yamana Gold (NYSE:AUY)
Historical Stock Chart
From Mar 2023 to Mar 2024