YAMANA GOLD INC. (TSX: YRI; NYSE: AUY; LSE: AUY) (“Yamana”) is
pleased to announce the completion of the integration of the Agua
Rica project with the Minera Alumbrera plant and infrastructure.
Going forward, the integrated project will be known as the MARA
Project.
The integration creates significant synergies by
combining existing substantive infrastructure which was formerly
used to process ore from the Alumbrera mine during its mine life,
including processing facilities, a fully permitted tailings storage
facility, pipeline, logistical installations, ancillary buildings,
and other infrastructure, with the future open pit Agua Rica mine.
Relatively modest modifications to the existing processing circuit
will be implemented to process Agua Rica ore in order to produce
copper and by-products concentrate, which will then be transported
to port for commercialization. Distance between mine and plant is
approximately 36 kilometres and ore will be transported to the
plant by overland conveyor.
The result is a significantly de-risked project
with a smaller environmental footprint and improved efficiencies,
creating one of the lowest capital intensity projects in the world
as measured by pound of copper produced and in-situ copper mineral
reserves, with further potential for optimization and
upside.
Yamana, as the sole owner of Agua Rica, and the
partners of Alumbrera have created a new joint venture (“Joint
Venture”) pursuant to which Yamana holds a controlling interest of
56.25%, Glencore International AG holds a 25.00% interest, and
Newmont Corp. holds an 18.75% interest. Yamana will be the operator
of the Joint Venture and will continue to lead the engagement with
local, provincial, and national stakeholders, completion of the
Feasibility Study and Environmental Impact Assessment for the MARA
Project, and generally lead the project to development and
operation. A technical committee has been formed and is comprised
of representatives of the three companies to oversee these
efforts.
“The integration effectively turns what was a
greenfield project into a much lower risk brownfield project,” said
Peter Marrone, Executive Chairman of Yamana. “Leveraging existing
infrastructure enhances project economics, simplifies permitting,
and reduces the project’s environmental footprint, thereby
significantly enhancing the value of the project. With the MARA
Project, the critical development components of plant and related
infrastructure already exist, which improves the development risk
profile and quality of the project. We are very pleased to have
worked with our partners, Glencore and Newmont, on the integration,
and we look forward to working with them on the development of the
project.”
For more information about the MARA Project,
please see Yamana’s press release announcing positive
Pre-Feasibility Study results for the project issued July 19, 2019,
available on the Company’s website at www.yamana.com.
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:Yamana Investor Relations
416-815-02201-888-809-0925Email: investor@yamana.com
Tavistock (UK Public Relations)
Charles Vivian / Emily MossTelephone: +44 7977 297 903 / +44 778
855 4035Email: yamana@tavistock.co.uk
Peel Hunt LLP (Joint UK Corporate
Broker)Ross Allister / David McKeown / Alexander
AllenTelephone: +44 (0) 20 7418 8900
Berenberg (Joint UK Corporate
Broker)Matthew Armitt / Jennifer Wyllie / Detlir Elezi
Telephone: +44 (0) 20 3207 7800
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 each company’s and the joint
venture’s strategy, the production of a Feasibility Study, plans or
future financial or operating performance of the Integrated
Project, and anticipated benefits of the integration 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 of each of the companies 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 Integrated Project, 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
Argentine Peso versus the United States Dollar), the impact of
inflation, possible variations in ore grade or recovery rates,
changes in the joint venture’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 Yamana’s Annual
Information Form filed with the securities regulatory authorities
in all provinces of Canada and available at
www.sedar.com, and Yamana’s Annual Report on
Form 40-F filed with the United States Securities and Exchange
Commission. Although all of the companies have 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. None of the companies undertake any 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 joint venture’s expected
financial and operational performance and results as at and for the
periods ended on the dates presented in the joint venture’s plans
and objectives and may not be appropriate for other purposes.
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