TransactionsCassels Brock Acts for Yamana Gold Inc. in the Option of Its Agua Rica Project to Minera Alumbrera LimitedPublished: 11/17/2011 By Joan Beck, Mark T. Bennett, Erik Goldsilver, Michael Lungu On August 31, 2011, Yamana Gold Inc., Xstrata Copper and Goldcorp Inc. reached a definitive agreement providing Minera Alumbrera Limited Sucursal Argentina the exclusive option to acquire Yamana's 100% interest in the Agua Rica project. Minera Alumbrera is a joint venture operation between Xstrata Copper (manager and 50% owner), Goldcorp (37.5% owner) and Yamana (12.5% owner) that currently operates the Alumbrera mine in Argentina. Under the terms of the agreement, Minera Alumbrera holds an exclusive four-year option to acquire Yamana's interest in the Agua Rica project for cumulative payments made by Goldcorp and Xstrata Copper of $110 million. Minera Alumbrera can elect to exercise the option at any time during the four-year period. Upon approval to proceed with construction, Yamana would receive $150 million and a further $50 million on commencement of commercial production. Yamana would also retain the right to a deferred payment related to 65% of the payable gold production from Agua Rica to a maximum of 2.3 million ounces. Cassels Brock acted as lead counsel for Yamana with a team comprised of Mark Bennett (Corporate & Mining), Erik Goldsilver (Corporate & Mining), Joan Beck (Corporate & Mining) and Mickey Lungu (Corporate). Federico Godoy, Sebastian Nordemann and Juan Sonada from Beretta Godoy acted as Argentine counsel to Yamana. |