Yamana Gold Inc. (TSX:YRI; NYSE:AUY) (“Yamana”), Glencore
International AG (LSE:GLEN; JSE:GLN) (“Glencore”) and Goldcorp Inc.
(“Goldcorp”) (TSX:G; NYSE:GG) (collectively the “Parties”) are
pleased to announce the signing of an integration agreement (the
“Agreement”) pursuant to which the Agua Rica project would be
developed and operated using the existing infrastructure and
facilities of Minera Alumbrera Limited (“Alumbrera”) in the
Catamarca Province of Argentina.
The Parties believe the integration of the Agua
Rica project and the Alumbrera mine (the “Integrated Project”) has
significant merit given the proximity of the assets, and the
potential to realize significant synergies by taking full advantage
of existing infrastructure associated with the Alumbrera mine for
the development and operation of Agua Rica. Agua Rica hosts a
large scale, long life copper mineral resource with associated
gold, silver, and molybdenum while the Alumbrera infrastructure is
of significant scale and configuration that is ideally suited for
the integration plan. Preliminary studies show the potential
for a mine life in excess of 25 years at average annual production
of approximately 236,000 tonnes (520 million pounds) of
copper-equivalent metal(1), including the contributions of gold,
molybdenum, and silver, for the first 10 years of operation.
This is based on the Agua Rica mineral reserve(2) estimated to
contain proven and probable mineral reserves of approximately 4.5
million tonnes (10 billion pounds) of copper and 6.5 million
ounces of gold contained in approximately 910 million tonnes of
ore.
The Agreement represents a significant step
forward towards the optimization of Agua Rica. The Alumbrera
infrastructure, including the existing infrastructure for
concentrate logistics located in northern Argentina between the
mine site and the port, presents a unique opportunity to enhance
project economics while also reducing both the project complexity
and environmental footprint.
The Parties have established a Technical
Committee to direct the review and evaluation of the Integrated
Project. It is expected that a pre-feasibility study for the
Integrated Project will be completed in 2019 and that a full
feasibility study with updated mineral reserve, production and
project cost estimates will be completed by 2020. This will
provide the framework for the submission of a new Environmental
Impact Assessment (“EIA”) to the authorities of the Catamarca
Province and for the continued engagement with local stakeholders
and communities.
The Parties have been working together with key
government stakeholders to support a path forward for the
evaluation and development of the Integrated Project. An
agreement has been reached with the Catamarca state mining company,
Catamarca Minera y Energética Sociedad del Estado (“CAMYEN”), in
respect to CAMYEN’s participation in the Integrated Project.
The Catamarca Province has approved a closure plan for the
progressive reclamation of the Alumbrera mine that synchronizes
with the advancement of the Integrated Project and is funded with
existing cash of Alumbrera on reserve for reclamation activities.
Yacimientos Mineros de Agua de Dionisio (“YMAD”) has indicated its
support for the use of the Alumbrera infrastructure for the
Integrated Project. Finally, the National Government
implemented a mechanism that was pending since the 2003 reform of
the Argentine Mining Investments Law, that sets out the framework
for refund of amounts paid in excess of a mining project's overall
tax burden, at a federal level. This supports fiscal
stability of mining projects in country, and the Integrated Project
specifically, as it advances.
____________(All amounts are expressed in United
States dollars unless otherwise indicated.)
- Copper equivalent metal includes copper with gold, molybdenum,
and silver converted to copper-equivalent metal based on the
following metal price assumptions: US$6,614/tonne for copper,
US$1,250/oz for gold, US$24,250/tonne for molybdenum, and US$18/oz
for silver.
- As of December 31, 2018, further details including tonnes,
grade and assumptions are presented at the end of this press
release.
Transaction Overview
The Agreement provides the Parties with a path
to a full integration of the Agua Rica project and the Alumbrera
mine technically and legally. The ownership of the Parties
upon the consummation of the integration structure is set forth
below:
Party
Percentage Ownership
InterestYamana
56.25%Glencore
25.00%Goldcorp
18.75%
In respect of the contribution of the Parties,
Yamana will contribute its current 100% interest in the Agua Rica
project and its 12.5% interest in Alumbrera, while Glencore and
Goldcorp will contribute their respective 50% and 37.5% interests
in Alumbrera. Full integration is expected to occur with the
filing of the full feasibility study and EIA. The integration
transaction structure will be determined based on the final
construction financing plan, which may include completing a
business transaction or other monetization event involving one or
more third parties with respect to the Integration Project, and
which may include a going public transaction. During this
period the Parties will further advance the technical work to
facilitate the permitting and dialogue with communities and
stakeholders, perform confirmatory due diligence, finalize binding
agreements with government stakeholders and finalize the legal
integration structure.
Qualified Persons
Scientific and technical information contained
in this press release has been reviewed and approved by Sébastien
Bernier (Senior Director, Geology and Mineral Resources).
Sébastien Bernier is an employee of Yamana Gold Inc. and a
"Qualified Person" (“QP”) as defined by Canadian Securities
Administrators' National Instrument 43-101 - Standards of
Disclosure for Mineral Projects.
Mineral Reserve Statement, Agua Rica
Project
|
Proven Mineral Reserves |
Probable Mineral Reserves |
Total Proven & Probable |
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000's) |
(g/t) |
oz. (000's) |
(000's) |
(g/t) |
oz. (000's) |
(000's) |
(g/t) |
oz. (000's) |
Gold |
384,871 |
0.25 |
3,080 |
524,055 |
0.21 |
3,479 |
908,926 |
0.22 |
6,559 |
Silver |
384,871 |
3.7 |
46,176 |
524,055 |
3.3 |
56,070 |
908,926 |
3.5 |
102,246 |
|
|
|
|
|
|
|
|
|
|
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000's) |
(%) |
lbs (mm) |
(000's) |
(%) |
lbs (mm) |
(000's) |
(%) |
lbs (mm) |
Copper |
384,871 |
0.56 |
4,779 |
524,055 |
0.43 |
5,011 |
908,926 |
0.49 |
9,790 |
Moly |
384,871 |
0.033 |
279 |
524,055 |
0.030 |
350 |
908,926 |
0.031 |
629 |
Mineral Resource Statement, Agua Rica
Project
|
Measured MineralResources |
Indicated MineralResources |
Total Measured &Indicated |
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000's) |
(g/t) |
oz. (000's) |
(000's) |
(g/t) |
oz. (000's) |
(000's) |
(g/t) |
oz. (000's) |
Gold |
27,081 |
0.14 |
120 |
173,917 |
0.14 |
776 |
200,998 |
0.14 |
896 |
Silver |
27,081 |
2.4 |
2,042 |
173,917 |
2.9 |
16,158 |
200,998 |
2.8 |
18,200 |
|
|
|
|
|
|
|
|
|
|
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000's) |
(%) |
lbs (mm) |
(000's) |
(%) |
lbs (mm) |
(000's) |
(%) |
lbs (mm) |
Copper |
27,081 |
0.45 |
266 |
173,917 |
0.38 |
1,447 |
200,998 |
0.39 |
1,714 |
Moly |
27,081 |
0.049 |
29 |
173,917 |
0.037 |
142 |
200,998 |
0.039 |
172 |
|
Inferred MineralResources |
|
|
Tonnes |
Grade |
Contained |
|
|
(000's) |
(g/t) |
oz. (000's) |
|
Gold |
642,110 |
0.12 |
2,444 |
|
Silver |
642,110 |
2.3 |
48,124 |
|
|
|
|
|
|
|
Tonnes |
Grade |
Contained |
|
|
(000's) |
(%) |
lbs (mm) |
|
Copper |
642,110 |
0.34 |
4,853 |
|
Molybdenum |
642,110 |
0.034 |
480 |
|
Mineral Reserve and Mineral Resource
Reporting Notes1. Metal Price, Cut-off Grade,
Metallurgical Recovery:
Mineral Reserves |
Mineral Resources |
|
Cut-off grade at 0.2%
copper |
Cut-off grade at 0.2%
copper |
|
Price assumption:
$1,000/oz gold, $2.25/lb copper, $17.00/oz silver and
$12.00/lb molybdenum |
|
|
Metallurgical recoveries
are 84.9% for copper, 52.7% for gold, 67.6% for silver, 65.9% for
zinc and 68.0% for molybdenum |
|
2. |
All Mineral
Resources are reported exclusive of Mineral Reserves. |
3. |
Mineral
Resources which are not Mineral Reserves do not have demonstrated
economic viability. |
4. |
Mineral
Reserves and Mineral Resources are reported as of December 31,
2018. |
5. |
Due to
rounding, numbers may not add up precisely to the totals. |
6. |
Mineral
Reserves QP, Enrique Munoz, MAusIMM, Registered Member of Chilean
Mining Commission and Mineral Resources QP, Felipe Machado de
Araújo, Registered Member of Chilean Mining Commission. |
|
About Yamana
Yamana is a Canadian-based gold, silver and
copper producer with a significant portfolio comprised of operating
mines, development stage projects, and exploration and mineral
properties throughout the Americas, mainly in 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.
About Glencore
Glencore is one of the world’s largest global
diversified natural resource companies and a major producer and
marketer of more than 90 commodities. The Glencore group's
operations comprise around 150 mining and metallurgical sites, oil
production assets and agricultural facilities.
With a strong footprint in both established and
emerging regions for natural resources, Glencore's industrial and
marketing activities are supported by a global network of more than
90 offices located in over 50 countries.
Glencore's customers are industrial consumers,
such as those in the automotive, steel, power generation, oil and
food processing sectors. Glencore also provides financing,
logistics and other services to producers and consumers of
commodities. Glencore's companies employ around 158,000
people, including contractors.
Glencore is proud to be a member of the
Voluntary Principles on Security and Human Rights and the
International Council on Mining and Metals. Glencore is an
active participant in the Extractive Industries Transparency
Initiative.
About Goldcorp
Goldcorp is a senior gold producer focused on
responsible mining practices with safe, low-cost production from a
high-quality portfolio of mines.
FOR FURTHER INFORMATION PLEASE CONTACT:
YamanaInvestors and MediaSteve Parsons, SVP,
Investor Relations and Corporate Communicationst: 416-815-0220 or
1-888-809-0925Email: investor@yamana.com
GlencoreInvestorsMartin
Fewings t: +41 41 709
2880 m: +41 79 737 5642E-mail:
martin.fewings@glencore.comAsh Lazenby
t: +41 41 709 2714 m: +41 79 543
3804E-mail: ash.lazenby@glencore.com
MediaCharles Watenphul t: +41 41 709 24 62 m: +41 79
904 33 20E-mail: charles.watenphul@glencore.com
GoldcorpInvestorsShawn Campbell, Director,
Investor Relations t: 800 567-6223E-mail:
info@goldcorp.com
MediaChristine Marks, Director, Corporate Communications t: 604
696-3050E-mail: media@goldcorp.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS: 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
Agua Rica project and the Alumbrera mine, and the Parties strategy,
plans and future financial or operating performance for the
integration referred to herein. 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
Parties’ expectations in connection with the development,
exploration and construction plans for the integrated Agua Rica and
Alumbrera discussed herein being met, 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, copper, silver, zinc and molybdenum),
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, hedging programs, changes in
accounting policies, changes in Mineral Resources and Mineral
Reserves, risks related to other investments, risks related to
metal purchase agreements, risks related to acquisitions, changes
in project parameters as plans continue to be refined, changes in
project development, construction, production and commissioning
time frames, 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 related to fiscal stability agreements, risks
relating to joint venture operations, title disputes or claims,
limitations on insurance coverage and 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
Parties filings with applicable securities regulatory authorities
and publically available. Although the Parties 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. The Parties undertake 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 Parties’ expected plans
and objectives and may not be appropriate for other purposes.
Yamana Gold (TSX:YRI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Yamana Gold (TSX:YRI)
Historical Stock Chart
From Sep 2023 to Sep 2024